Why don't we offer prepaid debit cards?

Our lives continue to change at a dramatic pace. Technology is making life easier and changing the way we carry out everyday tasks. 

Banking is at the forefront of these changes and we see it continue to evolve on a daily basis. Debit and credit cards are becoming increasingly redundant, replaced with digital wallets and electronic payment systems which free us of the need to carry around pieces of plastic. The Paypal account linked to your HootLoot account is one example of such technology that is available to use at thousands of well known shops. Another is the recent launch of Apple Pay, using technology in your phone to make payments with the security of fingerprint identification. 

We see this technology becoming increasingly dominant in the way we shop and pay for things. The nature of shopping is also changing as we use the internet for everything from music and game downloads to clothing to household items all the way to our daily groceries. Embedded in this is a desire not to have to enter all the card details everytime a purchase is made.

HootLoot has given the matter a lot of thought and decided against offering prepaid debit cards. Our reasons are as follows:

  • banks offer very good free products for children, so we don't see the value in paying extra for this. Our products will fit in to all banking and investing arrangements.

  • we are not convinced that getting young children into the habit of using plastic money is in their best interest See here for more information

  • maintaining the connection between real money, earning and spending will help children learn the value of money

  • cards cannot replace cash all of the time

  • research shows that cards do not offer sufficient protection. We believe that children are incredibly inventive and will always find a way around any restrictions, so education and trust rather than prevention is the answer

  • cards are liable to be lost, stolen and misused. There is a cost to replace which banks tend to absorb

  • prepaid debit cards do not pay interest. We think that interest is an important concept to teach children and it has an economic value that is better in the hands of children then the card providers.