Cash App targets a new type of customer: 6-12 year olds

Tech companies are constantly looking for new customers, and Cash App, the fintech company owned by Jack Dorsey Block, believes it has found a promising new demographic: kids.

Company that already offers Financial services for teenssaid this week that it is expanding its youth-focused services in an effort to build a relationship with Gen Alpha and the next generation of teens in the United States.

The new program will allow parents to create financial accounts for children ages 6 to 12. Children will not have access to the app, and these accounts will be managed by their parents, who will have the ability to deposit and monitor funds. Meanwhile, kids will get a debit card linked to accounts that they can use to spend money.

The company says accounts can also receive P2P payments from a small number of approved users (such as grandparents), and will be eligible to earn up to 3.25% in interest.

The idea is to teach kids about financial responsibility, according to Kristin Anderson, head of products for Cash App’s Core Networks group. “Cash App has been serving teen accounts for a number of years, and we’ve seen through our customer base that there’s this desire to be able to get kids into the experience early,” Anderson told TechCrunch.

Anderson described the new facility as a way for kids to “learn about savings and savings goals” in conjunction with the savings program The “wildcard” feature in the applicationwhich allows parents to schedule automated transfers to their child’s account.

Tuesday’s announcement also notes that kids can “graduate” to their Cash App accounts once they turn 13, subject to parental approval. Once a user turns 13, they can access… Wider selection From Cash App services, which include buying and selling Bitcoin, and even stock trading. These activities must be monitored and approved by an adult, via a so-called “Sponsored Account,” until the user reaches 18 years of age.

Cash App already has about 5 million monthly active teen users, said Owen Jennings, Block’s CEO and chief business officer.

A number of other platforms already offer fintech services for children. MrBeast, a viral TikTok star, recently Subject to government audit Due to its acquisition of Step, which provides financial services to users under the age of 18. Proponents of these services say they teach their young users financial literacy and responsibility, though Critics He claims to have In fact it does the opposite.