Couldn't you just piggyback another service like PayPal to process the payments? The PayPal student debit Mastercard is/was available to anyone over the age of 13. Then when you specify the chore and amount, the app sends the amount to the kids' account and therefore the card.
The card doesn't seem to exist any more, but it sounds almost exactly like what this app does (without the todo list functionality). It's linked to a parents' account so they can provide cash for fuel/going out and can keep track of the kids' expenses.
The challenge is storing money, legally, on behalf of a customer. No normal startup can afford to get licensed.
So you need to legitimately work around the 'stored value' problem, i.e. you need to find a 3rd party with a legal solution. That's either a real bank account or a prepaid card. And the 3rd party has to have an API that allows you to open accounts, execute transactions, etc.
The card program requires a bank partner too. And card programs cost 10K+ a month to run, regardless of whether or not you have 1 card issued or 250,000. Lots of cash burn early.
So that's the target state. Johnie outlined some nice interim steps below, but this is not simple. Oscar took on a challenging business problem.
The card doesn't seem to exist any more, but it sounds almost exactly like what this app does (without the todo list functionality). It's linked to a parents' account so they can provide cash for fuel/going out and can keep track of the kids' expenses.
http://www.cnet.com/uk/news/paypal-targets-students-parents-...