Socialwise Raises $3.5M for Teen Prepaid Card and ‘Bill My Parents’ Payment Solution

San Diego-based Socialwise, which has developed payment solutions that target teens and their parents, has raised nearly $3.5 million of a planned $4 million offering, according to a recent regulatory filing. As I reported a couple of years ago, former Gateway computer executive Jim Collas founded Socialwise, which trades on the Nasdaq over-the-counter market as SCLW, after shutting down the San Diego incubator Idea Edge.

In a statement issued by the company last week, Collas says, “This round of funding is intended to allow us to fully engage our national marketing and customer acquisition programs for our premium products and to quickly gain momentum in the marketplace.”

Socialwise says it plans to announce a partnership with “a significant online entertainment service company” as part of a marketing strategy that targets both teens’ strong desire for spending independence and a prepaid card for teens. The company says it’s also planning targeted advertising, pro athlete-endorsed projects, social media outlets, consumer events and sponsorships that will continue through next year.

Socialwise says its Flagship product offering is an online payment solution for young people, called “BillMyParents,” which actually provides a range of payment options. The choices include giving parents complete control over their teens’ purchases, a MasterCard prepaid gift card, to simply enabling parents to monitor their teens’ spending. Socialwise says its Web-based technology facilitates communications between parents and their children and helps to teach financial responsibility.

The New York-based Maxim Group acted as placement agent in the stock offering.

Bruce V. Bigelow was the editor of Xconomy San Diego from 2008 to 2018. Read more about his life and work here. Follow @bvbigelow

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3 responses to “Socialwise Raises $3.5M for Teen Prepaid Card and ‘Bill My Parents’ Payment Solution”

  1. Rider says:

    I’m completely satisfied with the new service available in US. Paysafecard is excellent solution for teens (it does not require a bank account) and everyone else, because it’s really the safest way to purchase online. I’m so glad they came in States too… If I remember right they were only available in Europe countries…

  2. Chad says:

    Myplash by Mastercard is a similar product which I use but I think they are both great for teaching teens about financial responsibility and money management. With teens having financial knowledge it can prevent them from going into credit card debit at a young age. As responsible parents know, most teens have trouble managing their money, so if you take the time now to teach them the correct ways, it is a lesson that will stick with them throughout their entire life.

  3. Josh says:

    Billmyparents is a complete scam. I ordered a card for my son and it took four weeks for the card to show up, then it would not work after I loaded $250 to it. I’ve been trying to get a refund for 7 weeks now and no luck.

    I did some research on them and they have absolutely no revenue so they must be some sort of ponzi scheme. Look for yourself: