“Money is king”? OK, boomer. Virtual payments are the gold standard these days – and teens have just discovered a new way to join the trend.
Mobile payment service Cash App announced on Wednesday that it is opening up access in the United States to younger users. People aged 13 and over can now open a Cash App account that allows them to send (and receive) money to (and from) their peers, among other features. They can also apply for a physical debit card for IRL use.
Until now, instant Cash App users had to be 18 years of age or older.
Parental permission is required for teen accounts, and there are of course some restrictions. But Cash App tells Money the move aims to bring young consumers into the equation as personal finance becomes increasingly digital – to “help level the playing field and equip teens with the tools they have.” need to participate in the economy “.
The Square-owned service isn’t the only company targeting a younger audience. Greenlight is designed to allow parents to monitor their children’s debit cards, encouraging them to save money at checking out which stores they can buy from. Step allows teens to open bank accounts at no cost and get a secure Step Card with the support of an adult sponsor.
FYI: The minimum age for Venmo and PayPal remains at 18 – or “the age of majority” in a user’s state.
How to create a Cash App account for a teenager
All a teenager has to do is download Cash App and create a free account. When they try to apply for a charge card or send a peer-to-peer payment, the app verifies their identity. Young people aged 13 to 17 will then be prompted to enter the email address, phone number or $ cashtag username of a parent or guardian. Cash App will use this data to contact the adult and ask them to accept the teenager’s account.
Once the green light is given, the teen can order a Cash card – which is actually a Visa debit card tied to their balance – and use their Cash App account to send and receive money. It will take about two weeks for the card to arrive in the mail, but the teen can use it to make purchases through Apple Pay and Google Pay in the meantime.
A major problem: the parent or guardian in question must have their own Cash App account whose identity has been verified in order to approve the teenager’s request.
Also be aware that the adult is the legal owner of the account – the teen is technically only an authorized user. As such, the adult has the ability to “see a complete record of transactions and transfers in their monthly statements”, as well as “deactivate the Cash card and account at any time in the app”, according to the. Cash App website.
What teens can do on the Cash App
Approved teen users are allowed to send, receive and request up to $ 1,000 in payments every 30 days through Cash App. They can add up to $ 7,500 per month to their balance and cash out up to $ 25,000 once a week.
Teens can also set up direct deposit, withdraw money from ATMs, and take advantage of Boosts, which are instant rewards at retailers like Starbucks, Burger King, and DoorDash.
Cash app restrictions for teens
Teenagers do not have carte blanche on the application. Cash App users under the age of 18 still cannot use some key features, such as investing, buying and selling Bitcoin, depositing checks, and making cross-border payments through the service.
They cannot use their Cash Card in bars, nightclubs, liquor stores, hotels, casinos and other places. They are also prohibited from using the card to pay for car rentals, cigars, dating services, deposit payments, etc.
More money :
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