Consumer use of prepaid cards is evolving beyond gift cards:
- Parents are now loading money onto college students’ cards because students are avoiding credit cards or can’t get approved for credit (my kids seem to get a credit card application a day still though)
- Cards are being used for sending money to families in other countries
- Prepaid cards are used in lieu of transit cards
- They are being used for a variety of rewards programs like: employee recognition programs; product rebates; airline vouchers; completing on-line surveys
HP recently moved more strongly into pre-paid card services. By enabling funds to become immediately available to consumers, these capabilities help financial institutions and businesses across a variety of industries and governments by providing a more secure transaction environment for the customers. Pre-paid cards have other benefits for consumers as well.
This is part of HP’s Instant-On Enterprise strategy, by enabling instant access to funds. Banks and business need to evolve during this time of belt tightening in order to be profitable, which includes offering new services in order to meet consumer demands. This new service not only helps banking clients meet consumer needs, but also helps them become more agile, providing the tools and information needed to anticipate and fulfill customers’ needs.
Prepaid cards are becoming an increasingly popular method of payment allowing customers to easily manage their money and avoid debt, while keeping a handle on their financial future.