The easiest, most well-received option has, and continues to be, open-loop prepaid gift cards. An increasing number of shoppers have realized that purchasing prepaid cards for family and friends during the holidays eliminates the stress that can come with searching for the “perfect gift.”
The problem with eliminating a payment choice has been brought into focus by a recent bill in Washington, D.C. to make it illegal to refuse cash. As The Washington Postreported, several restaurants have eliminated cash as an option, but some lawmakers in the district worry that the poor, especially those who cannot get bank accounts, will lose access to parts of the market.
For students entering high school, incoming college freshman, and young professionals living on their own for the first time, prepaid cards can be a helpful tool to promote financial responsibility while teaching valuable budgeting skills critical to future success.
Over the last couple of years, I have attended several payments conferences, forums, and breakout sessions geared towards Fintech. Most, if not all, seem to exclude, forget to include, or do not highlight the importance of Prepaid Cards in driving the growth of Fintech’s especially in the payments space.
You remembered to pack the sunscreen, flip-flops, and sun glasses, but what about what’s in your wallet?