5 factors of growth for ATM prepaid cards
According to Javelin strategy and research it has been estimated that there that ATM prepaid
card purchase volume will increase by $ 150 billion this year and its expected that this trend
will grow by $ 45 billion over the next five years. The time of year between 2009 to 2010 has
shown a growth of prepaid card use by 71%. So what are the reasons driving this growth.
There are five viable reasons for growth of ATM prepaid card usage
1) Low Fees- The prepaid card service providers are always innovating and adding new
features including strong security features like checking, that involves the user receiving 8
digit verification code. Also the service holders have reduced the fee structure, which is
motivating the consumers to opt for prepaid cards instead of other modes of payment. There
are no annual fees, monthly fees, or inactivity fees charged.
2) Transparent fees structure- Many prepaid card service holders have introduced a
transparent fees structure. For instance JP Morgans Chase liquid card was singled out for
providing fee transparency to its customers. The page of the card spells out the fees to
provide information to the prospective customers, before they acquire the card. The card
offers a low fees to the to its consumers and charges no amount for replacement or
activating the account.
3) Widespread ATM network that is fee free- There has a remarkable growth of ATM
network which doesn't charge any fee for using prepaid cards. ATMs do not charge a
surcharge fee, due to which consumers of prepaid cards are finding it worthy and convenient,
Which is another driving force in people using prepaid cards. For non bank prepaid cards,
ATM s and retail locations have become an important point for card reloading and inquiry.
Prepaid cards are fast, easy and convenient.
4) Integrated access of account- The prepaid card account holder are benefiting from
Integration of their account with the existing service systems. This provides the provision of
enhanced customer service. Financial institutions are vouching to provide ensured customer
satisfaction and service.
5) Link to savings- Popular prepaid card service providers are also offering linked savings
account. The card comes with facilities of rewards on purchases, which is also a common
feature of credit card. Reloading and checking the inquiry is as fast and safe. For instance
Paypal is offering a linked savings account with APY of 5%. Reloading is available through the
Prepaid cards are a fast growing and convenient way to make purchases, make fund access
and making payments. With lot of advantages prepaid cards have limitless possibilities. They
are safer, secured and convenient method of electronic payment.