Young people who use the popular online banking app, Revolut, are to be able to send and receive money for free among friends.

Until now, only parents or legal guardians who created the junior account and a designated co-parent, could add money to or remove it from the digital wallet.

However, payments between teens on the service will only be available to those aged 16 and over.

The move is part of a rebrand of what was Revolut Junior, which will now become known as Revolut <18.

The refresh will also see a new yellow design introduced, while from next week young users will also be able to personalise their own spending card through drawing, text and emojis.

Teenagers aged 16 or over will be able to create a Revolut account as long as they have parent or guardian approval.

Those aged 15 or less will still need to have their parent or guardian create the account for them from their Revolut app.

The Revolut <18 service also enables young people to get spending alerts and set savings goals, while parents can receive an instant notification when the card used, set up a regular payment and set targets.

"We listened to feedback from our customers who said they wanted our under 18s product to be customisable and to look and feel more personal to them," said Tara Massoudi, Revolut General Manager of Premium Products.

"Therefore we wanted to create a more grown up feel to the card and app as Revolut <18 is an account that can grow with you."

Revolut has around 2 million customers in Ireland, 400,000 of which had been using Revolut Junior.

The use of digital payments is rapidly increasing, driven on by the move to cashless transactions during the pandemic.

A number of other online only banks operate in Ireland, such as N26 and Bunq.