BillMyParents makes it easy for kids to spend parents' money

There's a cute new payment service just launching: BillMyParents. It's a way that kids ("tweens," according to the founder) can shop in online stores and easily spend their parents' money--if their parents later agree to buy them the stuff they want.

The system puts little BillMyParents buttons next to items in online retail. To check out, kids write optional notes to their parents about the items they want. Parents get e-mail notifications and can approve and pay for individual items directly.

Kids never get access to their parents' credit cards. And parents don't have to visit the store sites their children found the items on.

Jim Collas, CEO of SocialWise, which makes BillMyParents, says it is "focused on the communication between tween and parent." As inclined as I am to disparage systems that put the Web in the middle of the parent/child relationship, I actually think this idea works. It doesn't reduce or remove communication in a family, in fact it could increase it. And it makes it easier to mark, track, and purchase online items.

When a child sends parents a request through BillMyParents, the parent can buy the item directly from the request page. Or, of course, deny it.

(Credit: Screenshot by Rafe Needleman/CNET)

BillMyParents is also focused on making money. Collas points to the $28 billion spent online by the "youth demographic," and says he's also eyeing the $40 billion spent offline on products researched on the Web. Much of this commerce, he says, goes offline because the child can't buy the item. BillMyParents will make money from transaction feeds.

The challenge of BillMyParents is that is has to be integrated into online retail sites. At launch, the company has no customers to announce. The company will have an Amazon affiliate store, though, which will let any item on that service get routed through BillMyParents for approval, and then back to Amazon for purchase.

But Collas said he believes his solution will increase commerce on the sites it ends up on. He says the BillMyParents buttons can be placed on item pages, not in an online store's shopping cart, which makes the kids' "check-out" that much easier. Also, he points to the opportunities to integrate with sites and online worlds that sell virtual goods.

A secondary line of service, a debit card that can be loaded up with a kid's allowance, is coming in the future. Also, when I jokingly asked Collas if he was going to release services like "BillMyHusband" or "BillMyWife," he said seriously that he has registered many other "BillMy" domains. He does not have plans to expand his market from the youth demographic, though.

I believe this service's primary challenge is one of sales. It needs to get some merchants on board. PayPal could compete with it. So could the credit card companies. But those companies could also buy BillMyParents. It's a smart business.

[Angmarr]

"Parents get e-mail notifications and can approve and pay for individual items directly"
Looks like the beginning of a whole new type of spam!!! FROM YOUR OWN KIDS!! --- jkk

I dunno I have mixed feeling about this!

[nodash]

This will work if parents communicate with their children only through e-mail.

Is there an option to reply to your kid:

ARE YOU OUT OF YOUR MIND,YOU LITTLE %$%%%^%^&!

[wojx]

Lots of kids use email and so do lots of parents. lol. Most of the time, kids are out of their !@#$ing minds.

[dracoaffectus]

Sounds pretty useful, especially for modern families in which the parents both work full time jobs and the kids have their own laptops to do online shopping. Of courses, there's that potential for kids to totally spam their parents with these e-mails.

Heh, but smart parents might start noticing the times the e-mails were sent and could come back at their kid with, "What the hell were you doing shopping for new clothes at 10am, you were supposed to be paying attention to your english teacher!!"

[jmans1212]

I guess the age of parents talking to kids is over. I can see a kid sending the email then logging into their parents email and then buying the items themselves.
I have an idea if they are teens have them get a job.
but seriously I can see so much spam off this. But in all seriousness it is an intersting idea but nothing better then real comunication.

[luc_vdv]

Just shows how different the US and Europe are.
In Europe, a "service" like this would be called outrageous. In countries where it isn't illegal yet, you'd see new laws MAKING it illegal appear in no time.

[rafe]

Why would it be illegal?

[Michichael]

What rafe said. :3

[songgege]

it is astonishing in our country,in asia,inter tech is not as mature as in u.s so we kids want to purcase sth,we should get money from our parents,and go to Shop entities

[AlexanderNelson]

What an awful idea. This is just encouraging exactly what nodash said. Only communicating with your parents or kids through email?

That's just messed up; it's not cute at all.

Plus I hate the word "tweens."

[peterwhite]

Here's another thought, our economy is in the tank and those employees who haven't faced lay offs are now a few months away. Worse, those of us who already made cut one, cut two, could be swept up in cut three. All that said, we don't need an eTool to simplify discretionary spend - - we need to teach kids that it's time for them to face reality and help their family get through one of the toughest periods in our lives. Instead, this novelty tool looks to spread the horrible tendency of false credit - - spending money you don't have and letting someone worry about how it get's paid.

[dckemper]

Let's face it, e-communication and e-commerce are everywhere. The idea that BillMyParents disuades traditional communication is a stretch. I use this with my daughter and feel it provides me with a greater awareness of what she is spending money on; AND it has prompted good discussion about responsibility and money management.

Great site, great service - thanks

[rakeshinnovation]

Hi
This reminds me that people need spell check softwares. "between tweens ", this needs to be corrected

[DMUNY]

11:30 pm GMT


This company is very solid from top to bottom for a startup. I have been following it for sometime at http://www.socialwise.blogspot.com. The revenue potential is ridiculous on the low end.

Mark my words, this will be a household name.

[easton80]

Pretty soon no one will have to leave their computer screens. We will all weigh 400lbs, as was depicted in the movie "Wall-E".

but back to spoiled brats...I mean really, I would just get about 20 emails a day - not "Hi Mom I love you and miss you, and how was your day today!" to just a list of all the video games and Lego toys my son wants and everything ever put out by the High School Musical company that my daughter would want.

I want my kids to at least feel the need to suck up to me if they want something. I mean that is how the world operates anyhow. It is valuable for them to learn the skills of charm and manipulation to get what they want - these are VERY important life skills! No one is going to give you something if you just send them an invoice. That's like meeting a guy online and just sending a link to the house you want him to buy you. I want to hear how I'm the best Mommy, the prettiest Mommy and how they are going to take the garbage out with no complaints if they just get the skateboard they want.