Prepaid Card Issuers Expecting Substantial Growth by 2017
| July 14, 2010 |
When was the last time you used at a prepaid card to make a purchase? While for some it may have been a while, for others the answer is quite different and yours could be very soon. This is because recent reports have shown that millions of people are opting to use prepaid cards for a variety of reasons. In turn it is projected that by 2017 funds placed on prepaid debit cards could more than triple what they are now.
While no one may have expected it years back, millions of people have turned to reloadable prepaid cards as an alternate form of payment instead of credit cards. Now that the times have changed, prepaid cards are finding themselves in the pocketbooks of millions of Americans. According to a report from MasterCard, in 2009 consumers loaded their plastic with around $120 billion. In 2017, they expect much more as the load amount could reach well over $440 billion, and this is just only factoring in U.S cardholders.
Already this year we have seen NetSpend, which is one of the major prepaid card providers in the U.S., hit record numbers which is discussed in a posting entitled, "Billion Dollar Month for One Prepaid Card Issuer". With that record breaking number, experts predicted that that was only the beginning. As the prepaid card industry continues to grow at a phenomenal rate, it is expected that new offers will be created to compete for your attention. These will most likely be connected to financial institutions, private companies and even retailers, and they should have very competitive pricing that will make these plastic more consumer friendly than ever before. In addition to that we are seeing increased rewards such as cash back, discounts and points that make prepaid cards just as rewarding as credit cards.
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