A new prepaid card, Splash Plastic, has been launched in the UK today aimed specifically at teens.
This could be parents’ worst fear: their teenagers can now buy goods over the Internet. What is more, unlike some cards in the US, they will have no access to monitor their children’s spending. Splash Plastic’s card is intended to act like cash, with no parents, no bank and no credit, overcoming the barriers preventing teens shopping online.
However, cardholding teens will only be able to shop at selected web merchants and age restricted goods, such as videos, will be banned. Unlike its rival, Rools, Splash Plastic is unable to age-verify transactions. This may have to change if Splash Plastic is to be successful. If the popularity of prepaid mobile phones is transferable to other advance payment schemes this could boost the potential market to more than just teens. In this case Rools may have the advantage, allowing access to all goods, providing the age is right.
Rools may also have an edge in the offline world – vital in a time when the standalone banks are out of favor. Through a number of discounts with selected partners, such as Thorntons and Neal’s Yard, Rools should be able to establish itself as a complete part of teen spending habits. Splash Plastic does not have this advantage, but consumers re-loading the card in high street stores will establish that essential link between the online and offline worlds.
Soon, every teen magazine will contain one of around 10 million cards Splash Plastic is planning to send out this year. One thing is certain, with a GBP2.5 million advertising campaign behind it, this card will not be ignored. The banks may have to watch where their customer base is going – after all, only half the population own a credit card. Prepaid cards, which are arguably more secure, could become the favored ePayment method as security fears continue to dampen Internet spending.
