Increased demand for cash alternatives and ecology-friendly payment methods have significantly altered the modern financial market. Nowadays, there is no need to go to a physical store and pay with paper money. By making a few clicks, it is possible to purchase goods and pay for services without leaving your home. All of this would be impossible without e-wallets, bank cards, cryptocurrency, and of course prepaid cards.
The size of the international prepaid card market equaled almost $1,848 billion in 2019 and is expected to reach $5,510.87 billion by 2027 with an impressive 14.9% compound annual growth rate. From our overview, you are going to learn more about the concept of prepaid cards, their main types, hits and misses, and the areas of use.
A prepaid card is a card that allows users to spend the money that is previously loaded into their cards. It can be used for online purchases, paying the bills, and even gambling. These cards are issued to users who don’t qualify for opening a bank account or are not willing to have one. The most popular representatives are Paysafecard, Venmo, and AmazonPay. Main credit card companies like Visa, American Express, and Discover also issue prepaid cards of their own.
In some ways, prepaid cards are similar to gift cards because you are able to spend only the amount that is already loaded into the card. When the balance is used, users can reload it on the Internet, at a physical store, or ATM. Here are some of the most popular types of prepaid cards:
It is difficult to find an industry where users can’t pay with prepaid cards. More and more merchants add this payment method to the list, so you just need to check out the banking section to see if your prepaid card is on offer. Here are the most popular industries where you can use this method:
You can also buy tickets to events and trips using a prepaid card.
It is impossible to invent a payment method that would satisfy the needs of all population segments. That is why it’s important to be aware of the pros and cons of prepaid cards to make the correct decision. We have made a list of the key features to keep in mind.
Pros:
Cons:
The prepaid card market is growing at a fast speed. While in 2019 28% of global users have chosen this payment option, in 2020 this figure equaled 33%. Prepaid cards give a chance to manage the budget, remain anonymous, and conduct fast payments without a need to open bank accounts and undergo background checks. On the other hand, in cases of theft, you won’t be able to return the money. Hopefully, we have given you enough information to make the right choice and decide whether prepaid cards are a good pick or not.
If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.
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