More reasons for prepaid card popularity
Oct 25, 2012 Sean Albert
Prepaid cards have rapidly become one of the more popular electronic payment methods in recent years, as more consumers seem to prefer the new form of plastic. Alternative financial services have evolved rapidly, while many believe this could be the result of increasing regulations and fees coming from Washington and Wall Street. The Motley Fool recently reported that prepaid cards are largely gaining in popularity because banks look to reach new demographics while also avoiding fees derived from federal legislation. However, the source asserted that the lack of fees on these prepaid cards, especially those issued by financial institutions, might not last. The news provider explained that prepaid cards are extremely popular among consumers because of the enhanced ability to set up automated bill payments, use mobile apps and other features that are still somewhat uncommon in traditional banking accounts. Further, individuals who simply do not what traditional checking and credit card accounts can circumvent the difficulties by using prepaid cards. Many experts purport that prepaid cards might become the new norm for consumer accounts, as unbanked and underbanked populations continue to grow in the United States. Prepaid cards and other electronic payments have been shown to be among the best methods of reaching these individuals and obtaining their business.