Children going cashless: Parents give pocket money via bank transfers | City & Business | Finance

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The firm, which is part of MasterCard, said that 49 per cent of parents are interested in paying their children’s pocket money using mobile apps, online bank transfers and other digital systems.

It also found that 16 per cent of parents nationally are already giving their children pocket money using online bank transfers, rising to 29 per cent in London.

VocaLink said that a further 11 per cent give their kids allowance via smartphone apps and four per cent through pre-paid cards.

VocaLink chief executive Paul Stoddart said that the shift to digital pocket money is being accelerated by schools, many of which have banned cash to stop bullies from stealing pupils’ lunch money.

Instead, the schools accept methods such as ParentPay, special online accounts for children that parents settle monthly.

“Digital pocket money is becoming the norm for many. While cash still remains at the forefront, parents are now choosing to pay pocket money to their children via online transfers or via a mobile app,” he said.

“This trend isn’t just limited to children at home, some schools already mandate a completely cashless policy.

“Parents are getting comfortable with settling a digital account at the end of a month, rather than sending their children to school with cards.”

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