Features such as reloadable, low cost, flexible, secure and anonymity are creating mass appeal for prepaid cards across markets such as youth, underbanked, gift, government payroll and employment benefits.
The application of prepaid card technology has been adopted by most major financial service providers and is recognised now as a core product offering to the public. This technology is now being adopted by employment benefits providers in the form of reloadable, multi-usage open or closed loop cards.
The Employee Benefits Group have seen the use of prepaid cards as employment benefits growing dramatically over recent years. This trend is evident in the workplace, with an increasing number of prepaid cards made available to employees, either in reward and recognition schemes, to manage expenses or to pay staff who don’t have a bank account. You can also offer it to employees for personal use where a retail partner reward scheme will provide a generous return on their spending in the form of cashback.
“Prepaid card technology creates opportunities to modernise existing and develop new employment benefits products which have proven to better serve our target markets.” Said John Sylvester, Director of Motivation for P&MM Ltd
Awareness of prepaid cards and their growth in Europe is ‘soaring’ according to the Boston Consulting Group. A 2012 Javelin strategy and research report identified “prepaid as the only payment card to experience growth in consumer wallets between 2010 and 2011.” In a society where cash is no longer king and credit card spending is diminishing against debit, prepaid cards have achieved great success. In fact, they have been the fastest growing type of payment card for the last 5 years running with annual growth rates of over 20% per annum.
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