Mozper is a Latin America-based FinTech that has launched out of the Y Combinator accelerator to offer a digital banking service for teenagers and parents.
The name of the company is derived from the English word for money, prosperity and generation Z, according to a report from TechCrunch. The company’s co-founder Yael Israeli, who previously worked at Lehman Brothers and Barclays Capital, came up with the idea for Mozper after discussions with her husband’s roommate Gabriel Roizner, who had already built startups in Latin America.
Roizner and Israeli started to build a solution that was similar to offerings in the US and Europe, like Greenlight Financial Technology.
Mozper has launched into Mexico and is currently working with the country’s government to get a FinTech license, the article claims. To support its operations, the company has partnered with Toka, as its sponsor bank, and Visa for card processing support.
The FinTech platform offers a mobile app and physical debit card that is aimed at helping teenagers better manage their money. Kids are taught good money habits, monitor balances, make payments and receive money top-ups from parents.
There have been a rising popularity in teenager-focused FinTech platforms. The aforementioned Greenlight raised a $54m Series B round from investors to drive the development and expansion of the platform.
There have been a number of similar companies also raising capital over the past year. Last month, Walrus secured a pre-seed capital investment to support its development. Through the mobile banking app, Kids 13 and up can use the mobile app to improve their financial education around savings, loans, insurance and more.
Other companies to raise capital include Jassby and FamPay secured $5m and $4.7m in funding this year, respectively.
The rise of these banking apps could be attributed to the poor financial literacy kids have, which often transcends into their adult life. John Ellmore, founder of financial product comparison website Know Your Money, recently told FinTech Global, “In our increasingly cashless society, it can be challenging for children to understand the value of money and learn that there isn’t an endless supply available to spend.”
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