O2 is one of the largest phone companies in the United Kingdom. They have announced a new product they will be offering to their consumers. This product is a prepaid Visa card. The idea is to help consumers maintain better control of their spending. O2 joined with NatWest in order to offer this new card.

A pre-paid card works differently than a regular credit card. You place a balance on the card, pre-loading it for use. Each time you use it this balance will decrease, until the card is empty or you reload it. The card protects against becoming overdrawn in your account or reaching your credit card limit with a high interest rate. On O2 Money card holders can check in to see their balance in real time. The site can be reached on mobile phones.

Visa card holders can use the card online, withdraw money from ATM’s, and make any type of purchase. Parents find these cards are great for their children who need spending money, but that do not need too much. The cards will be available for anyone 13 years or older. Parents can keep track of their children’s spending habits, where they go, and reload the card when needed.

O2’s chief executive stated they wanted a fresh and transparent product to consumers. They felt the prepaid card was the best way to go. NatWest had the best deal for the company to partner with, and their O2 Money site is great for connecting card holders with their accounts. NatWest is a huge credit card issuer, especially for student credit card products. They have a credit card for students with a 500 pound credit card limit, and no annual fee. Their products do vary with interest rates, but the prepaid card has no interest rate to worry about.