Sure it’s a really bad recession. But you can always bet on one of the guaranteed cash flow streams to make money out of – kid’s allowances. And PayPal’s doing just that.
PayPal, on Tuesday, introduced a new service called Student Accounts. It’s an exclusive service for parents with kids in high school or college. The service includes the use of a PayPal-branded Mastercard debit card that’s link to the parent’s PayPal account. This allows them to dole out funds to their kids either on a scheduled date or whenever they feel like giving some money to their kids.
It’s basically an allowance system via PayPal and a debit card.
This looks like an attractive service for tech-savvy parents who are comfortable with using PayPal. It also allows them to track when, where and for what items their kids are shelling out money. Then again, not all kids are stupid and would most likely be wary of it.
Still, this is PayPal we’re talking about so costs are part of their service. For one, PayPal charges $1 for every ATM withdrawal then there are percentage fees when using the card outside the US.
Check out their microsite for Student Accounts.
