The challenge
Towards a Cashless Society?
In a world increasingly moving towards the dematerialization of money in favor of faster, more technological, and traceable payment methods, there is a particular category of people at risk of paradoxically being left behind: teenagers. The current landscape of financial services does not yet offer solutions exclusively aimed at them; instead, there are only adaptations of existing products that do not take into account all the characteristics that differentiate a teenager from an adult in terms of their approach to money.
Combining this aspect with the growing need for financial awareness among young people, so they can navigate economically in building their own future, it is natural to think that the way they approach money for the first time is destined to change. In such a scenario, how does the way young people receive, manage, and use money from their parents transform? And in what ways can they be helped to manage their savings intelligently through financial education that goes beyond the concept of the classic piggy bank?
“At the current speed, Italy will reach the EU average for the value of card payments in 2040.”
– Community cashless society, report 2019
Foundational research
Investigating the financial habits of adolescents and parents through Qualitative Research.
From these premises, the idea of creating a digital financial service dedicated exclusively to young people and families was born. The first step was a qualitative research study to investigate the habits and needs of these actors in their daily relationship with money.
For the research, seven families were selected, comprising a total of eleven adolescents aged between eleven and seventeen years, and twelve parents. Among the adolescents, six are female and five are male. The families predominantly reside in Lombardy and have varying degrees of familiarity and comfort with technology.
Before conducting the interviews, each adolescent was given a one-week expense diary, in which they recorded all their income and expenditures for a week.
The diary aimed to be a first step for these young people in tracking their expenses, raising their awareness about money management, a practice that is rarely attempted by young people of this age.
Foundational research
1:1 Interview with families and feature desirability card sorting exercise.
Once the adolescents completed their diaries, qualitative interviews were conducted with both them and their parents. These interviews were carried out separately to avoid responses being influenced by the presence of others. The questionnaire structure was mainly divided into three parts.
The first part aimed to investigate how money is received (or given, in the case of parents) and the participants' thoughts on topics like digital payments, cash, and the associated security.
The second part focused on understanding how money is spent (in the case of the children) and how it is managed and saved for goals or desires (in the case of the parents). Adolescents were asked to share their experiences with the diary.
The third and final part explored their opinions on a hypothetical digital service that would enable cashless money transfers between parents and children. This part also addressed how such a service could aid young people in managing their savings intelligently and responsibly.
"Paying with my smartphone? That would be nice and convenient; I always have my phone with me."
– Teenager
"I have never received any offers from the bank aimed at my daughters."
– Parent
"Having money in an account is safer than having the same amount in your wallet."
– Teenager
Foundational research
The outcome of the research activity clearly shows a huge opportunity for financial services dedicated to families.
The research results can be summarized in six key points:
1 – Cash remains strong. Cash tends to be the preferred means for parents to give money to their children, primarily out of habit (they grew up with this method and pass it on to their children).
2 – Cards are safer. The majority of respondents indicated that cards are the safest tool to keep money, mainly due to the authentication methods required to use the card balance (greater protection).
3 – Digital payments are little known but desired. Generally, there is little knowledge about the world of digital payments and the possibilities offered by today's digital financial services, both among parents and children. Some still believe that transferring money digitally requires bank transfers that take several days to process, while some young people are unaware that it is possible to pay via smartphone.
4 – Few financial services aimed at teenagers. Many parents complained about the lack of services targeted at their children by the banks where they have an account. These parents tend to create a joint account with their children, where they deposit money during holidays or special occasions like religious rites of confirmation and communion.
5 – Saving is goal-oriented. When teenagers decide to save money, it is usually to buy something, especially in the short to medium term. Generally, these are small to medium purchases. For more expensive purchases, young people prefer to wait for holidays.
6 – Little attention to expenses. Teenagers tend to pay little attention to the money spent. After filling out the expense diary, almost all of them stated it was the first time they had tracked their expenses, and sometimes the report surprised them both positively and negatively.
The solution
TeenPay, a digital wallet for teenagers.
The analysis of the results obtained allowed us to outline the various types of financial actors involved and to develop the concept from which teenPay was born, a digital wallet for teenagers.
TeenPay is a concept design of a service dedicated to families, consisting of a mobile application linked to a virtual prepaid card. This service facilitates the exchange of money between parents and children digitally via smartphone, enabling young people to make purchases online and in stores that accept contactless payments. The goal of teenPay is to encourage teenagers to manage their savings wisely on a daily basis through conscious use of money, investing in their own desires. The wallet is intended for both children and parents, offering tailored user experiences depending on the user.
The operation of the service is quite simple: parents and children download the application and register for the service, which, like any digital financial/banking service, requires identity verification through the upload and verification of an identity document. The parent links their bank account to the app, allowing them to quickly transfer money from their account to their teenPay wallet. Through the application, parents can send or request money from their children, and children can do the same.
TeenPay for children
A new financial experience for teenagers in a
full-digital way through the smartphone.
The app experience for teenagers is centered around five key features:
1 – Money Management Overview. The main screen provides a summary of available funds and overall money management, with a Personal Financial Management (PFM) tool showing progress over time and smart notifications offering tips for improvement.
2 – Goal-Based Savings. Teenagers can manage money to achieve personal and shared goals. They can set spending targets and automatically allocate saved funds to these goals, with various deposit options available.
3 – Instant Transactions. The app allows teenagers to send and request money instantly to and from parents and friends. Contacts are imported from the phone’s address book and divided into family and peer groups.
4 – Universal Wallet. Teenagers can use a reloadable prepaid card linked to the app to make contactless payments in stores. Payment is made by selecting "pay in-store" and confirming via NFC and biometric recognition. The wallet can hold money from any source, not just transactions with parents and friends, accommodating other forms of income like holiday gifts or small jobs.
5 – Spending Advice. The app tracks spending habits and offers tailored advice to help teenagers manage their money wisely, promoting financial awareness and helping them develop personal financial management skills.
TeenPay for parents
A new banking experience for parents, with complete control on every aspect of their financial relation with the children.
The experience of the app for parents is reflected in four main points:
1 – Overview of Money and Savings. Parents receive a summary of the money given to their children and track their overall savings progress.
2 – Saving for the Future. Parents can set up shared goals for long-term objectives and manage deposits, either automatically or manually, with options for contributions from other users if shared.
3 – Flexible Money Transfers. The app allows parents to provide money through a fixed allowance or on request for specific needs, all managed via smartphone.
4 – Encouraging Savings with Conditions. Parents can set conditions for money transfers and goal setting, promoting wise money management among children, with a reward system for meeting these conditions.
A change that is already happening
In a cashless scenario, the way teenagers and child approach money for the first time is destined to change drastically.
We could see this change within few years from now.
TeenPay tries to move the first steps in the exploration of this scenario, in order to analize and understand the new needs and habits of teenagers in a cashless world.
