Lootlock: Protecting Kids from Gaming Overspending - TechCrunch Disrupt 2025

Lootlock: Protecting Families from Unexpected Gaming Expenses

Nick Pompa, the founder of Lootlock, is both a dedicated gamer and a skilled software developer specializing in fintech. He also holds the role of father to two children under the age of two.

Pompa anticipates sharing his enthusiasm for gaming with his children as they mature. He began his gaming journey at the age of six, as he shared with TechCrunch.

Addressing a Growing Problem

Lootlock was chosen as one of the 200 startups to participate in TechCrunch’s 2025 Startup Battlefield and will be showcased at TechCrunch Disrupt, scheduled for October 27-29 in San Francisco.

Pompa discovered a recurring concern among parents – unexpected and substantial credit card bills resulting from children’s in-game purchases. These charges often occurred unintentionally, sometimes amounting to thousands of dollars.

The gaming industry has been criticized for employing “design tricks” that target children, encouraging them to unlock features requiring payment, as highlighted by the Consumer Financial Protection Bureau.

The Tactics Employed by Game Developers

“Game developers utilize sophisticated design, social engineering techniques, and player tracking to incentivize increased spending among young players,” Pompa explained. “Having been an avid gamer myself, I’ve directly observed the significant increase in micro-transactions within the industry over the past eight to nine years.”

While Fortnite was compelled to issue $126 million in refunds earlier this year to those who filed claims, such instances are uncommon. Typically, parents are left with no option but to cover the costs.

Lootlock’s Solution: Controlled Spending

Common advice suggests utilizing device-level parental controls to block in-app purchases. However, Pompa noted that many parents are comfortable allowing their children limited spending, provided it’s appropriately managed.

The inspiration for Lootlock came from a friend, Joe, a father of three avid gamers. Joe had been providing his children with allowances, which they then used to purchase gaming products, creating a cumbersome system of cash exchange and requiring constant monitoring of their purchases.

Lootlock enables parents to automatically load a digital prepaid card, issued through their partnership with Transcard, onto their children’s devices.

Parents can schedule regular allowance deposits and control the availability of funds. Children can unlock additional funds by completing chores, with parental approval for increases granted via text message.

“We empower parents with exceptionally detailed control over their children’s spending habits, both in terms of amount and timing,” Pompa stated.

Gamified Financial Education

Lootlock is also introducing a “bounty boards” feature in October, gamifying chore completion. Parents create lists of chores, and children earn a “bounty” for each completed task. Reaching a predetermined bounty threshold unlocks additional allowance.

The app incorporates a gamified financial education component. Children select avatars and earn points for responsible spending habits, such as regularly checking their account balances. These points unlock equipment for their avatars, which are persistent across Lootlock integrations, including Discord servers.

“We are integrating financial concepts into a video game framework,” Pompa explained.

Lootlock card balances are restricted to gaming purchases, preventing use for other online transactions. This allows parents to focus on teaching responsible gaming habits without closely monitoring all online purchases.

Currently, Lootlock operates with a team of seven and is entirely self-funded.

Learn More at TechCrunch Disrupt

To experience Lootlock firsthand, alongside numerous other pitches, insightful workshops, and valuable networking opportunities, visit the TechCrunch Disrupt website to learn more about this year’s event, taking place October 27-29 in San Francisco.