Children aged 10 and over can now pay with their smartphones using BUUT, the youth bank of ABN AMRO. BUUT states it is the first bank in the Netherlands to allow mobile payments for minors under 16. Through this feature, the bank aims to help young people manage their spending more consciously under parental guidance.
Shifting the age barrier
Traditional banks, including ABN AMRO itself and ING, only permit mobile payments from the age of 16. Parents or the children themselves can activate the feature from that age. Third-party digital wallets like Google Pay and Apple Pay also require users to be at least 16 years old due to strict age verification policies. BUUT bypasses these traditional restrictions by embedding a proprietary payment system directly into its own dedicated youth app.
Parental control and dashboard oversight
The new feature, called BUUT Pay, enables teenagers to make smartphone payments while keeping parents in total control. Parents decide whether to activate the service and can adjust the settings at any time. Through a linked parental dashboard in their own banking app, parents can monitor their child’s real-time spending, set daily or weekly transaction limits, and instantly freeze the mobile payment option if necessary.
Financial guidance over restriction
Financial parenting expert Annelou van Noort states in the BUUT press release that young people learn to handle money more consciously by gaining experience under parental supervision. She notes that many parents worry mobile payments will lead to faster spending because digital money feels less tangible than physical cash. However, she believes the real challenge lies in daily commercial temptations rather than the payment method itself, making early supervised practice essential.
How the pouch system works at the checkout
The smartphone payment system operates through digital savings pouches within the app, designated for categories like clothing or snacks. This structured system forces the child to think about budget allocation before making a purchase.
To complete a transaction at a cash register, the user must follow a specific sequence. First, they unlock their phone using a secure passcode or facial recognition. Next, they hold the device near the contactless payment terminal. Finally, instead of automatically drawing from a main balance, the app prompts the child to select the appropriate designated pouch on their screen to fund the purchase. BUUT has declined to disclose its current customer numbers.
@anp | NEWS BRAINPORT
