Osper is a startup that has come up with a way to create a banking service that can be used by children by combining prepaid debit cards and smartphone apps controlled by them and their parents. This concept could help children learn about the value of money. Osper has raised $10 million in funding led by Index Ventures.
Osper participated in the TechStars London accelerator. Osper will be using the funding to launch the service out of beta and roll out in the U.K. It will also expand abroad. Other investors include Horizons Ventures, Peter Jackson (Travelex CEO), and Darren Shapland. Osper is aimed at the U.K.’s seven million 8-18 year olds. Osper is a mobile-only and branchless banking service.
The accounts do not have credit or over-draft so the children can only spend what they have. The Osper Cards are free for the first year and then costs £10 per year after that.
The orange card can be used in stores for cash withdrawals at ATMs and for online purchases. Parents can see how the money is spent. This also means that parents will no longer need to hand over cash or lend their credit card for online purchases.
Osper generates revenue from the interchange when a transaction is made, the interest on deposits, and the annual subscription fee.