Prepaid Cards Become More Mainstream
by Konrad Christensen
Many financial institutions (FIs) looking to attract business from underserved or underbanked customers rightly turn to prepaid cards to achieve their objectives. Yet, what many of these FIs are finding along the way is a market for these cards with their traditional-banking customers, too. With the rise in prepaid card popularity over the last two years, these unique payment and financial-management vehicles have become a more mainstream, non-cash alternative.
In fact, prepaid cards fill a specific market niche that appeals to all income levels:
- Customers can use prepaid cards at any time, from anywhere, without restrictions or security concerns;
- Customers can’t overdraw funds from a prepaid card, making them an ideal tool for budgeting personal finances or teaching children and teens financial responsibility;
- These cards can be used to make purchases where cash isn’t accepted, like shopping online or pay-at-pump services.