OnePay has launched banking for 13 to 17-year-olds, pitching it as an account customers can keep into adulthood rather than one they leave once they reach 18.
Harsh Gupta, GM at OnePay, said: “Most teen banking products are dead ends. You spend years learning to manage money in an app that you then have to leave the day you turn 18. Here, a 13-year-old’s account can be the same one they’ll have at 30, with years of credit history attached to it.”
Credit building is central to the offer. Nothing is reported to credit bureaus while teens are under 18, but eligible account history is reported once they turn 18, giving them an established credit file for a first car loan or apartment application.
Parents sponsor the account and can follow activity, manage controls, set allowances and receive real-time alerts through the OnePay app.
Teens can spend, save at up to 3.35% APY, invest and earn rewards, with no monthly fee and a choice of Builder Card designs including denim, leopard and sticker styles.
At age 18, the account moves with the customer, who keeps their card, spending and savings history and any credit history they have built. They also gain access to OnePay’s wider platform, including its credit card, Pay Later and crypto products.
OnePay, which is backed by Walmart, cites roughly 42 million teenagers in the US as the potential market.
Fintechs and banks are increasingly competing for younger customers, with providers such as Revolut and Greenlight targeting teens before they reach adulthood.