They like using the Internet. They have lots of pocket money to spend. And they spend a higher proportion of it online than the rest of us. Teenagers are just the sort of people an online seller is interested in, and the things they want to buy — games, CDs and clothing — are easily sold on the Web.
But paying online is a tricky business for consumers who are too young to own credit cards. Most have to use a parents card. They want a facility that allows them to spend money.
That may come sooner than they think: new ways to take pocket money into cyber space are coming out rapidly on both sides of the Atlantic. If successful, these products could stimulate online sales.
In general, teenagers spend huge amounts: $153 bn (billion) in the US last year and £20 bn annually in the UK. Most teenagers have access to the Internet at home or at school — 88 percent in the US, 69 percent in the UK. According to Jupiter Research, one in eight of those with Internet access has bought something online — mainly CDs and books.
In most cases, parents pay for these purchases with credit cards, an arrangement that is often unsatisfactory for them and their children. Pressing parents to spend online is less productive than pressing on the high street. They’re more likely to ask “Why” if you ask to spend some money online.
One way to help teenagers change notes and coins into cybercash is through prepaid cards such as IntenetCash in the US and Smart cards in the UK, Similar to those for pay-as-you-go mobile telephones, they are sold in amounts such as £20 or $50 with a concealed 14-digit number that can be used to load the cash into an online account.
