May 10, 2013 Sean Albert
The use of prepaid cards is becoming more prevalent among American consumers. Fox Business speculated that the alternative credit form may overtake traditional checking accounts as a primary means of payment among consumers in the United States soon.
The source indicated that the use of prepaid cards nearly tripled from 2008 to 2012, citing a report from Mercator Advisory Group. Last year, U.S. retailers saw $76.7 billion in prepaid card funding contribute to purchases.
Experts with Mercator said that the shift in credit usage has been rapid but not unexpected.
"The commercial card market has really evolved in the last couple of years," said Michael Misasi, senior analyst at Mercator. "Extremely flexible technology solutions are enabling middle-market issuers to expand the addressable market for commercial cards and compete with the global banks that once dominated the business."
Just how financial enterprises plan to make their prepaid products stand out is yet to be seen but major banks and business providers have already entered the prepaid realm.
Fox Business noted that the Mercator expects prepaid usage to hit $168 billion by 2015.