As more and more consumers start to use prepaid cards to control their spending limits, BBVA Compass has launched a budgeting app alongside the release of its Visa prepaid card.
Prepaid is perfect for millennials
The smartphone application will operate in conjunction with the BBVA Compass ClearSpend prepaid Visa debit card, which is a replacement of its SafeSpend card.
BBVA’s release comes hot on the heels of research revealed by Payment Eye only last week, in which prepaid cards have become the payment method of choice for the next generation of financial service customers.
The Prepaid International Forum (PIF) conducted a survey into spending habits with children under the age of 16. The report found that 58 per cent use a prepaid card or a mobile banking application as their payment account of choice.
Parents were questioned as to why they were letting their children use prepaid cards, in which a majority of parents responded that these accounts give their kids more financial responsibility, as well as the ability to manage a budget.
‘More and more mainstream’
This is a market that BBVA desperately wants to tap into. BBVA’s own research tells them that millennials and adults aged 18-32 are the perfect markets to introduce its ClearSpend card to.
‘‘Our research shows a rapidly expanding market, with more clients turning to prepaid cards to manage their budgets, stay out of debt and avoid overdraft and check-cashing fees,’’ commented Jeff Dennes, chief digital banking officer for BBVA Compass.
‘‘The cards are more mainstream now and expectations have risen. Clients expect greater account management functionality, and we’ve responded with one of the most convenient and easy-to-use products in the industry.’’
The ClearSpend application, which was developed with Engage Financial Technology, allows spenders of all ages and income levels in the United States to track their spending habits using their ClearSpend card.
After just 30 days of using the technology, the application designs a personalised budget for each user, as they try to keep on top of their spending.
Dennes added that the card and application will give spenders clarity and peace of mind about their spending habits, as well as the ability to teach their children about being responsible with their money.
‘‘Many clients with traditional bank products and services are adding prepaid cards to their suite of financial services, and income level has also become less of an indicator of who’s using the product,’’ ended Dennes.
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