Nick Pompa, the creator of Lootlock—a platform designed to stop children from making unauthorized gaming purchases on their parents’ credit cards—is both a passionate gamer and a fintech software engineer.
As a father to two young children, he’s eager to introduce them to gaming once they’re old enough. Pompa began playing games himself at age six, he shared with TechCrunch. Lootlock has been chosen for TechCrunch’s 2025 Startup Battlefield 200 and will be showcased at TechCrunch Disrupt in San Francisco from October 27 to 29.
Through conversations with fellow parents and following news stories, Pompa repeatedly encountered accounts of children unexpectedly racking up large credit card charges, sometimes amounting to thousands of dollars.
The gaming sector is infamous for employing manipulative “design tricks,” as described by the Consumer Financial Protection Bureau last year. These tactics often target minors, encouraging them to pay for additional game features. Other organizations, such as the FTC, have also issued warnings about these practices.
“Game developers use sophisticated design, social tactics, and player data to push kids toward spending more during gameplay,” Pompa explained. “As someone who’s played games for years, I’ve personally witnessed the industry’s major shift toward micro-transactions over the past eight or nine years.”
Although the FTC required Fortnight to pay out $126 million in refunds to claimants earlier this year, such outcomes are uncommon. Most parents simply end up covering the costs themselves.
The standard recommendation is for parents to enable parental controls on devices to restrict in-app purchases. However, Pompa noted that many parents he knows are comfortable with their children spending a limited amount on these purchases, provided certain conditions are met.
He recounted the story of his friend Joe, whose experience inspired the creation of Lootlock. Joe, a father of three enthusiastic gamers, gives each child a monthly allowance. The kids would use this money to buy gaming items, resulting in a convoluted process where Joe would give them cash, only for it to be returned to cover credit card payments, all while he had to keep a close eye on their spending.
Lootlock enables parents to seamlessly fund a digital, prepaid credit card—provided by Lootlock’s partner, Transcard—which children can add to their device’s digital wallet.
Parents have the option to schedule a set allowance to be loaded onto the card, either weekly or monthly, and can choose to restrict immediate access to part of the funds. Children can unlock more money, for example, by completing chores. Parents can approve additional funds via text message.
Looklock gaming parental control app
Image Credits:Lootlock
“We’re offering parents extremely detailed control over both how and when their children are allowed to spend,” Pompa stated.
Lootlock is also introducing a chore-based gamification feature called “bounty boards,” launching in October. Parents can create these boards, which act as chore lists for their children. As kids complete tasks—like tidying their room or caring for pets—they earn “bounties.” Once they reach a parent-set goal, the app releases extra allowance for them to use.
There’s an educational aspect as well, designed to teach financial responsibility. Children select an avatar, and as they demonstrate smart spending—such as regularly checking their Lootlock dashboard for account balances—they accumulate points that can be exchanged for avatar upgrades like swords or armor. Their avatar remains consistent across all Lootlock integrations, including its Discord communities.
“We’re integrating all financial lessons into a video game format,” Pompa remarked.
Lootlock balances are limited to purchases related to gaming and cannot be used for other online transactions. This means parents don’t need to constantly supervise what their children are buying online. The main goal is to help kids develop healthy gaming habits.
The company currently has a team of seven and is entirely self-funded.
If you’re interested in hearing directly from Lootlock, as well as exploring many more startup pitches, insightful workshops, and networking opportunities that can drive your business forward, visit this page for more details about this year’s Disrupt , taking place October 27 to 29 in San Francisco.
