Venmo launched a new program that will let teens have their own accounts as soon as next month.
Starting in June, parents and legal guardians will be able to open a Venmo Teen Account for kids between the ages of 13 to 17 years old, so they can send and receive money. The account also comes with a Venmo Teen Debit Card.
Parents or legal guardians will be able to monitor their teen's transactions, manage privacy settings and send money to them if needed, according to PayPal, the parent company of Venmo.
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The digital payment service billed the move as a way to help teens learn more about managing money under parental supervision.
"Venmo is a natural place for teens to learn how to engage with money responsibly," Erika Sanchez, Venmo's vice president and general manager, said.
Sanchez cited a recent study that indicated how 86% of Gen Z are interested in using an app to learn about personal finances.
The move helps the company broaden its customer base and try and gain market share against competitors including Zelle and Cash App.
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Parents will be able to supervise up to five teen accounts from their personal account. The app allows parents to see their teen's account balance and transaction history, review their friends list and block users from interacting with the account.
Parents can also manage the Teen Debit Card's PIN and lock and unlock the debit card if need be. The card will be linked to the Venmo Teen Account balance.
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The new teen accounts don't have monthly fees. There are also no-fee cash withdrawals at participating ATMs through the Venmo debit card.
The accounts will roll out to select customers starting in June 2023 but will be "widely available" in the following weeks.
