The news: Google Wallet now lets parents send money directly to their children under the age of 18, per a press release.

On top of direct payouts, parents can also schedule automated payments (like allowances), set daily spending limits, and lock their kids’ account balances remotely. Parental controls have also been enhanced: Parents can monitor their teens’ account transaction history or receive push notifications for each transaction.

This update builds on earlier Google Wallet features for kids:

• Kids can use Google Wallet to pay with a debit or credit card connected to their parent’s account.
• Parents can monitor and set limits for kids’ spending via Family Link.
• And children can also use supported passes within Google Wallet such as concert tickets, library cards, gym memberships, and gift cards.

How we got here: Fintechs are racing to capture Gen Alpha within their ecosystems.

• Cash App launched parent-controlled bank accounts for children as young as 6.
• Binance debuted Binance Junior, crypto savings accounts for kids.
• And Apple Cash Family lets parents load money onto their children’s accounts with parental restrictions.

Implications for digital wallets: As the first generation to grow up immersed in touchscreen and mobile-first tech, Gen Alpha’s digital habits are crystallizing before adolescence. This forces payment providers to target users for acquisition at even younger ages, both for brand loyalty and to lock in digital payment habits early.

But to seize a share of this cohort, wallets need to convince kids’ parents to trust their brand and products, the majority of whom are millennials. 

These digitally aware parents have higher expectations for parental controls from their own experience online, making strengthened safety features, enforced age limits, and age-appropriate features table stakes.

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