By 2022, the prepaid cards market will exceed a staggering $3.653 trillion. This massive growth has earned interest among the unbanked. Not only that, those not qualified to get a bank account or those with bad credit ratings now have the option to use the best prepaid cards instead.
Over the years, businesses and even governments have created amazing prepaid card offers apart from the best prepaid cards that individual consumers use and enjoy. They also often target consumers directly or through partnerships they make with relevant third party payment processors.
With continued technological innovations, the services that can be accessed using prepaid cards have become almost limitless.
High Impact Use Cases of Prepaid Cards
Prepaid Gift Cards
Undeniably, one of the most marketed among the prepaid cards available in the market is the gift card. In fact, some of the biggest and most established companies in the world like Apple, Google, Netflix, and Amazon offer gift cards to their clients. Prepaid cards can also be used to purchase memberships, games, and applications. Others also use their gift cards to avail of discounts and other premium offers.
Prepaid Payroll Cards
Payroll cards are used to transfer salaries to unbanked employees. They are also used to purchase goods, withdraw money from ATMs, and pay bills. Prepaid cards are also deemed a favorite among employees and employers alike as they can make salary processing to unbanked employees fast and seamless.
Prepaid Travel Cards
Prepaid travel cards are considered wonderful tools by those who would like to budget their money if they want to travel outside the country. Prepaid cards can also be loaded with the home currency. Ideally, you should load the money before your trip.
Fortunately, prepaid cards are accepted by many businesses and merchants outside the country. The card can also give travellers peace of mind knowing they won’t have to carry travelers checks and cash wherever they go.
Consumers use their prepaid cards for other reasons. Often, this involves the purchase of commodities. Using a prepaid card will not only provide utmost ease and convenience, it can also help ensure that you do not overspend and stay within your budget.
General Purpose Reloadable Cards
General purpose reloadable cards are considered one of the most basic among the prepaid cards available. General purpose reloadable cards also carry the logo of the credit card establishments they are associated with.
Specific amounts of money (maximum and minimum limits apply) can be loaded onto the card. The card can then be used to pay for bills and for other purchase transactions. General purpose reloadable cards can also function as a budgeting and multipurpose payment tool.
Prepaid Expense Cards
Prepaid cards are created to ensure contractors, employees, and clients can avail of consulting services, purchase office supplies, and pay for trip expenses using one card. There are also health savings account cards available that provide expenses that can be paid using the card.
Prepaid Card Trends to Watch Out For
Increased card usage
To improve card activation rates, some prepaid card providers give rewards to users who keep their cards loaded consistently. Some providers also waive their annual fees.
Banks now allow multiple ways to load money to their prepaid cards. Customers also have the option to use ATMs at various stores if they want to load money onto their prepaid cards.
Some online account management gives cardholders the option to transfer money from one account to another. It is also possible to link a prepaid card to one’s mobile phone for contactless transactions. This makes account management a breeze.