Catch 'em Early! Indian teenagers' wallets will be attacked by pocket money apps in 2023
Teenagers will have access to UPI this year, which will not only boost the popularity of pocket money apps but also improve users' experiences by giving them more secure and convenient quick payment choices.
Teenagers will have access to UPI this year, which will not only boost the popularity of pocket money apps but also improve users' experiences by giving them more secure and convenient quick payment choices.
In India, digital finance and wireless payments are expected to develop again in 2022, leading to a rise in the use of wallets, contactless cards, digital payment apps, and other financial goods.
In the middle of all of this, a niche consumer group of 350 million teenagers and young adults in India arose, catching the eye of neobanks catering to young people and pocket money applications that target their age range. In 2023, growth in the fintech sector that serves this market segment explicitly is anticipated.
The development of this ecosystem in the coming year will be fueled by a few key elements. Let's examine the processes that led to this occurrence.
Young people want to learn.
To start, in the age of digital wallets and payments, the notion of financial literacy is evolving. Teenagers in India want to learn how to handle their own money, receive a regular allowance, and make decisions in the real world like their parents. They are exhibiting increased interest in personal financial education as a result of seeing their parents at work and making money.
87 percent of teenagers talk to their parents about money and savings, according to a groundbreaking study on financial literacy among teenagers conducted in India in 2022. Teenagers exhibited interest in learning about digital wallets in over 93 percent of cases, and in learning about crypto assets like blockchain and NFTs in 70 percent of cases. This shows how eager kids are to understand the financial solutions of the modern era and how much they have to learn.
Ironically, kids didn't really have easy access to and visibility into their accounts before pocket money apps, from spending to saving, to learn how to manage money properly. A more structured and trustworthy system of financial advising is now absolutely necessary. Teenagers in India had few opportunities for a long time to become financially literate. At both the school and graduate levels, financial education for their age group is unquestionably one of the most underappreciated disciplines of study.
Banks don't go where fintechs do
Even from a banking standpoint, this market is neglected and usually overlooked because it is generally thought of as being unproductive. Banks only begin to take notice of them when kids turn 18 and begin taking out student loans. When compared to fintech companies like pocket money applications for minors, which have made the procedure digital and much simpler, opening a bank account for a minor in India is a time-consuming process. Compared to Gen-Z pocket money apps, which are tailored specifically for teenagers, mobile banking apps offer a one-size-fits-all experience.
educational curve
With their innate desire to comprehend the subtleties of personal economics, Gen-Z in India is becoming considerably more independent than prior generations. They prefer rapid gratification in practically every aspect of their lives, even when it comes to something as crucial as handling their allowance or pocket money.
Additionally, they are a technologically adept age that adapts quickly, which makes them much more responsive to digital goods. Pocket money apps have largely succeeded in capturing this sweet spot. With the help of the prepaid cards offered by Pocket Money App, this consumer group now has the chance to comprehend and apply financial concepts to actual circumstances and instances from their own age abound.
The parental community, like previous generations, is on the other side of the coin and wants what is best for their child. In contrast to the past, parents are now more financially aware and supportive of their kids' relevance as they work to raise financially responsible teenagers. It is becoming advantageous for India's urban core group to be responsive to digital services intended to teach financial literacy to youth.
Teenagers in India would be more empowered than ever before to enjoy financial freedom in 2023.
How UPI help in P2P model
Teenagers will have access to UPI this year, which will not only boost the popularity of pocket money apps but also improve users' experiences by giving them more secure and convenient quick payment choices. Teenagers will undoubtedly interact with retailers, food delivery services, and clothes companies much more in the future.
It's projected that more and more players would give young consumers increased wallet limitations to accommodate their spending requirements. Teenagers will also be able to use the prepaid cards made available via the Pocket Money app to make ATM withdrawals and do peer-to-peer (P2P) transfers.
Teenagers value acceptance, appreciation, and encouragement as users. It seems sense that retail companies that cater to them will collaborate with money-saving applications this year to offer even more carefully tailored discounts and rewards.
A CAGR of 22.7 percent is predicted for India's sizable fintech market, which will increase from $26.3 billion in 2019 to $85 billion by 2025. (Source- ResearchAndMarkets.com). Players focused on this consumer group are ready to take a sizable chunk of the overall pie, despite the fact that the fintech ecosystem serving the requirements of teenagers and young adults is still in its infancy. The groundwork has already been done for how India's youth will handle personal finance issues when they become adults, and the field is expected to mature and grow quickly by 2023.
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