Internet payment cards target teens

Payment cards have been launched that allow teenagers to buy goods over the internet without using a credit card.

The cards work in one of two ways: a voucher system similar to mobile phone top-up cards, where cards of a certain value are bought and can then be exchanged for goods and services online; and cards that hold only a certain amount of money but which can be topped up by parents adding to the card's account.

One of the cards is called Jalda and is produced by internet service provider World Online. Marketing Front has launched another, called Splash, and cards known as Y-creds are also available.

The cards would, on the surface, seem to be a good idea, offering teens the opportunity to manage their money and to get used to budgeting. After all, the cards are like pocket-money: parents give a certain amount of money and when it is gone, there is no more.

But the danger is that teenagers and younger children will now face the hard sell. Steven Carrick-Davies, of Childnet, said that parents need to be forewarned of the way that their children are going to be enticed to spend their money. "It is all about recognising that children are going to be bombarded with marketing hype," he explained.

The fears would seem to be backed up by taking a cursory glance through the marketing material for the various cards, which sings their praises as a means of targeting the teenage market.

However, Carrick-Davies draws attention to the fact that parents have a responsibility to teach their children how to react to the marketing they see online. "It is a question of helping them to understand what they are seeing; to be empowered and to take responsibility," he said.

He is also keen to stress the benefits of the payment cards when they are used responsibly, suggesting that parents may well prefer the cards because they will offer more protection from children abusing parents' credit cards.

See also:

Pre-paid cards reassure net shoppers

Companies such as Splash Plastic, Global Internet Billing and Smart Creds are introducing pre-paid cards as an online alternative to credit cards.  17 Jul 2001

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