Re: UKNM: RE: Splash debit card for under 18s

[Steve Johnston]

Hi Dan,


The important difference about Splash - as it _seems_ to me, 'cos I don't

_actually_ know yet - and the reason it is going to cost GE, Arts Alliance

et al. billions to establish is that it subverts the existing payments

clearing systems which are dominated by the banks (and the Visa and

Mastercard they collectively own). To implement a new payments structure is

something that is really only feasible through the internet as the

instore/competitive issues about the status quo are probably insurmountable.


For online retailers, a prepaid system where money really is money, and not

a suggestion of money at the chargeback whims of the banks, has to be very

welcome. Anyone currently taking credit cards from consumers owes it to

themselves to look at this thoroughly. Besides, I have an inexplicable

soft-spot for anything Arts Alliance tries to do - never met them though.


The key thing about the pocketcard of which you speak and its VISAbuxx.com

equivalent, is that they play into the status quo. Which, trust me, is not a

good thing when it comes to banks and payments.


You mustn't forget that teenagers have been able to buy online in the UK for

sometime using the Solo subset of Switch - kids from 12 can own one and it

authorises every transaction and only works if there are cleared funds in

the account. Amazon.co.uk has been taking Solo for ages - I wonder if they

even know the percentage of Solo users on their site who are under 18.


Steve.

----------------------------------------

stevejohnston [dot] co [dot] uk

t: +44 (0) 7050 6050 33

f: +44 (0) 8707 3455 33

----------------------------------------



----- Original Message -----

From: Dan Calladine <

dcalladinemediaaudits [dot] com

>

To: <

uknmchinwag [dot] com

>

Sent: Tuesday, September 12, 2000 12:55 PM

Subject: UKNM: RE: Splash debit card for under 18s



> I think it's an incredibly smart idea, but I've just done a quick search

and

> found pocketcard (http://www.pocketcard.com) which seems to do the same

> thing, but better, because it's Visa, and acceptable in shops.

>

> The point being that people under the age of 18 are not liable for their

> debts, so they can't have bank accounts with overdraft facilities, or

their

> own credit cards (unless they're guaranteed by someone over that age), so

a

> debit card will only let them spend what they've got.

>

> It's bound to lead to playground one-upmanship, with some kids having

them,

> but most not, and the kids having them boasting about what their limits

are.

>

> It will also mean that sites can target kids more directly, because

they'll

> have their own means of paying for stuff online, and they won't need

> parental clearance to spend out on stuff they've seen online.

>

> So - the concept is very good for sites targeting kids, and a very smart

> idea, albeit potentially socially divisive, but there's some strong

> competition out there.

>

> All IMHO

>

> Dan


[Sam says: msg chopped]



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