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Prepaid cards become a viable option for small businesses

May 07, 2013 Sean Albert

Prepaid cards become a viable option for small businesses

Prepaid cards have gained popularity among consumers in recent years, but small business owners are also finding the form of alternative credit useful.

Many main street owners are using the cards as a way to control spending, American Banker says. Instead of providing employees with cash to pay for office expenses, many small business leaders are turning to prepaid cards as a way to cap worker spending. It's similar to the approach that many parents have taken to monitor teen spending, which has popularized the cards, according to American Banker.

The source also indicated that some banking experts believe the market for prepaid cards tailored to business needs could grow. Only a few business-specific services of this nature are currently on the market.

One trend that has started to emerge is the offering of prepaid products from specific companies that are targeted at business owners. For example, Dynamic Business recently reported that Skype launched prepaid cards in Australia last year aimed at company administrators. It's the fourth country that Skype has started selling prepaid cards in.

The video conferencing provider believes the cards will make it easier for business leaders to use their calling and conferencing services.