For consumers prepaid cards can facilitate financial inclusion providing new opportunities for an estimated 42% of UK consumers who cannot access credit or have a compromised credit history. The experience of prepaid mobile telephones (60%+ of the UK market is prepaid) in the UK has shown that consumers like prepaid especially the budgeting and control capabilities. The UK has a growing migrant population which can use prepaid as an entry point into banking services.
General spending cards are also ideal for consumers concerned about fraud during e-commerce shopping allowing discrete amounts of funds to be loaded for specific transactions removing the risk a debit or credit card being compromised.
Consumers can also use these cards to share money. A second card can be sent to family members or friends enabling them to access cash or spend the funds at competitive exchange rates in other countries.
As with prepay mobile telephones, prepaid cards allow consumers to budget and manage their money as well as giving money to family members such as teenagers who cannot shop online without such a service.
General spending cards can be delivered in a business’s brand to enable it provide an additional service to existing customers and develop new revenue streams.