Santander launches 'kitty’ app to simplify group money collections

The kitty gets a digital makeover to help groups of up to 100 collect money for gifts, holidays and more.

Santander has launched a new iPhone and Android app, dubbed KiTTi, which it claims can help make collecting cash from friends, family and colleagues a much simpler process.

The free smartphone app, developed in conjunction with payment services provider Kalixa and mobile technology business Monitise, allows money to be paid into a digital kitty by up to 100 people and accessed by one prepaid MasterCard.

The bank says the app will be useful for anyone looking to take the hassle out of collecting money in situations where costs need to be shared, for example for a holiday, social event or group gifts.

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How it works

Even though KiTTi is powered by Santander, you don’t need to be a Santander customer to use it, just aged 18 or over with a UK debit card.

To get the ball rolling one person needs to download the app from the Google or Apple app store and register as the owner.

This person will then be sent a contactless prepaid MasterCard to use for each kitty (up to a maximum of 12) created on the app.

Each group can be given a name, target value (maximum £4,000), payment milestone and, if necessary, a closing date for the payments to be collected.

The registered user can then invite people to join the group via a text message sent through the app, which will give them access to pay into the shared pot with their debit card.

Money accumulated in the pot can be then be transferred onto the KiTTi MasterCard to be used online, in shops or to withdraw cash in the UK or overseas.

In the future Santander hopes to allow users to set up direct debits and standing orders, which will also make the app useful for flat and house sharers.

What to watch out for

There is a flat fee of 35p each time a payment is made into a group, which could be avoided by collecting the cash in person or just getting people to transfer the money into one person’s bank account.

Plus withdrawing cash at an ATM using the prepaid card in the UK will cost 35p per transaction or £1.50 per transaction if abroad. There’s also a 1.5% foreign exchange fee when you make purchases in in other currencies other than Sterling. However, using the card to pay in shops and online is free.

You can see more information on the fees, limits and restrictions at the KiTTi website.

Another point to bear in mind is that a prepaid card does not carry the same protection as a credit card or debit card.

Any money deposited into KiTTi won’t be protected by the Financial Services Compensation Scheme which normally applies to UK banks and building societies, and purchases over £100 won’t benefit from protection like Section 75 of the Consumer Credit Act, which you can get with a credit card.

And if you use KiTTi, the registered owner is the legal owner of all the money that gets deposited into a group. So although you’ll be able to see what happens with the money you won’t necessarily be able to claim it back very easily, unless the person in charge of the account agrees.

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