What Is GoHenry
GoHenry is an app that provides prepaid debit card features to minors, along with financial information. This app can be controlled and also topped up by parents as needed. The startup recently raised $40 million in its first institutional fundraiser. Before this, GoHenry was able to raise close to $30 million with help from family and friends and through equity crowdfunding. So far, the company has about 5,000 shareholders and half of them are customers.
The startup company has more than 1 million members. This includes both parents and kids, but they have doubled their customer base every year for the past 6 years. Studies that were conducted in the UK stated that parents paid £98 million ($130 million) in pocket money in the year 2019 alone. Their children were getting more than £2.2 million ($2.3 million) for just doing chores around the house. In turn, the young users of the prepaid debit cards spent almost £100 million ($132 million).
Banking With a Purpose
The idea behind GoHenry was not only to have a banking service for the younger generation but to have a banking service that also has a purpose. There has always been a divide between young people dealing with money. They typically get cash from their parents or have a savings account where the money is deposited.
It used to be impossible for minors to have payment cards, but now, more and more financial services are being created. It helps younger users learn to be responsible with money and understand what it means to work and earn it.