Greenlight Financial Technology makes a debit card and app for kids and parents. The Atlanta-based company was founded in 2014 by President and COO Johnson Cook and CEO Timothy Sheehan.
They issue a MasterCard debit card from Community Federal Savings Bank and covered by their FDIC insurance.
The app enables parents to manage their child's spending, by allocating specific stores or categories where kids can spend money, receiving real-time notifications when the card is used, transferring money to their child's card for allowance or incidental expenses and manage weekly or one-time rewards, such as for finishing chores.
Greenlight protects the cardholder with a parent-controlled PIN number, ATM access controls and automatically blocking wire transfers, money orders, lotteries and cash back from purchases. Through the ATM access, parents can turn on access to ATM's in case their child needs cash.
There is a companion app for the cardholder, and both parents and child can freeze the card in case its lost or stolen through the app. The companion app also allows the kids to monitor their spending, set and track savings goals, request money and receive notifications for funding or spending.
Educational savings account
Launched in 2018, the Greenlight Educational Savings Account for Kids allows parents to incentivize saving through parent-paid interest. Through the app, kids can set savings goals for specific purposes which will also earn the parent-paid interest.
Introduced in 2018, the Giving feature allows parents to add money to their kids which can only be used for charitable donations or purchases at non-profit organizations.
Announced in June 2017, Greenlight raised $7.5 million in their Seed round. Relay Ventures led the round in which Social Capital, New Enterprise Associates and TTV Capital participated. The funding came after Greenlight announced their 10,000th customer since their January 2017 launch.
In February of 2018 Greenlight raised $16 million. The round was led by TTV Capital with participation from New Enterprise Associates, Relay Ventures, SunTrust Bank, Ally Financial, nbkc bank, Canapi and the Amazon Alexa Fund.