By year 2022, the size of the prepaid card market will exceed $3.653 trillion. This incredible growth is vastly increasing interest for those in the unbanked populations. Moreover, individuals with bad credit ratings or those who are not qualified to get a bank account now choose to use the best prepaid cards they can find instead.
However, that is not all. Over the years, governments and businesses have also created unique prepaid card offers aside from the ones individual customers enjoy. They target customers either directly or through partnerships with third party payment processors.
With continued technological innovations, the services availed through the best prepaid cards can become limitless.
Prepaid Cards: High Impact Uses
Consumers use prepaid cards for various reasons. Oftentimes, it involves the purchase of commodities. The card does not only offer utmost convenience, it also helps them stay within the budget and not overspend.
General Purpose Reloadable Cards
This is considered the most basic of all the prepaid cards available. These cards carry the logo of major credit establishments. They can be loaded with a specific amount of money (minimum and maximum limits apply) and can be used to buy groceries, pay for bills, etc. They can also act as a multipurpose payment and budgeting tool.
Prepaid Travel Cards
Prepaid travel cards are great tools for those who want to budget their money when they travel outside the country. The card can be loaded with the home currency before leaving the country and is accepted at merchants or businesses that also recognize the payment service used. The cards frees travellers from the hassles and risks of carrying cash and travelers checks with them anywhere they go.
Prepaid Gift Cards
Hands down, the most marketed of all the prepaid cards is the gift card. Some of the biggest companies in the world (Amazon, Apple, Google, and Netflix) offer gift cards to customers. The cards can be used to purchase applications, games, and memberships. It can also be used to avail of premium offers and get discounts.
Many businesses are not using prepaid cards to make things easy for their employees. This allows employees access to services that were unavailable to them previously.
Prepaid Payroll Cards
Payroll cards make it possible to transfer salaries to unbanked employees. They can also be used to pay bills, purchase goods, and withdraw money from ATMs. The cards are also considered a favorite by employers and employees alike as they can make the processing of salaries to unbanked employees seamless, quick, and fast.
Prepaid Expense Cards
Prepaid expense cards are designed to allow clients, contractors, and employees to purchase office supplies, avail of consulting services, and go through trip expenses using only one card. There are also health savings account cards that offer several expenses that can be paid through the card once used.
Prepaid Card Trends to Look Out For
Top-Up Options: Banks are now allowing multiple ways to add money to prepaid cards. Customers can also now use ATMs at various stores to load money onto their prepaid cards.
Increasing Card Usage: To improve their card activation rates, some providers reward cardholders who keep their cards loaded on a routine basis. Some also waive the annual fees.
Account Management: Some online account management allows cardholders to transfer money from one account to another. It is also likely for prepaid cards to be linked to mobile contactless payments. This can make account management a lot easier.
Card Management Solution: As prepaid cardholders are demanding smarter and safer alternatives to carrying cash, many have turned to prepaid cards. Taking into account all the amazing benefits prepaid cards offer, it’s no surprise it becomes a staple in everyone’s wallet in the near future.