Japan banks expand cashless payment services for children

Japanese financial institutions are expanding cashless payment services specifically designed for children. These services aim to serve as financial education tools, helping children learn to manage allowances and understand systematic spending as the country moves toward a cashless society.

Seven Bank recently launched a prepaid card and dedicated app for children aged 6 and older. The system allows parents to load allowances, monitor spending history, and receive real-time notifications. The app also includes a feature to reward children with money for completing tasks like chores, intended to help develop decision-making skills.

Other providers are also entering the market. Sumitomo Mitsui Card Co. introduced ‘Kazoku no Osaifu,’ an app for family money transfers and balance management. Rakuten Card Co. offers smartphone-based prepaid services for families, while Sony Bank provides debit cards for individuals aged 12 and older, provided they are linked to a family member's account.