prepaid credit card market segment and forecasts up to 2022
However, a large number of bank customers use traditional bank products such as cash and cheques, current bills of exchange, rather than credit and debit cards in daily financial transactions.
This is due to concerns about hidden costs and convenience issues related to cashless payment cards.
The banking sector is trying to overcome these problems by providing prepaid credit cards.
A prepaid credit card looks similar to a credit or debit card with the card number, brand and signature fields on it.
Prepaid credit cards are issued by financial institutions and in addition to the need to pre-load a certain amount in the account, it performs the function of a credit card.
The cardholder can use the card to purchase the item until the pre-loaded amount is completed.
Prepaid credit cards limit borrowing from financial institutions after the pre-loaded amount is completed.
The issuance of prepaid credit cards does not require the cardholder\'s bank account.
Instead, the amount is stored in a temporary bank account until the amount is fully used.
This factor is expected to drive forward the adoption of prepaid credit cards for non-bank account customers in the coming years.
Financial institutions are using prepaid credit cards to enable ATMs (ATM)
And point of sale (POS)terminals.
If the card is stolen or damaged, the agency can issue a new card based on basic customer information.
The remaining amount of the last card is automatically transferred to the new card.
Prepaid credit cards eliminate fees and interest related to regular credit cards.
Therefore, customers do not have to worry about the risks of hidden costs during the use of credit cards.
Depending on the type of application, prepaid credit cards have various forms in the market.
Gift cards are the most commonly used prepaid credit cards on the market.
Customers can use gift cards to buy goods in the market through POS terminals or online shopping.
Meal cards provide meal allowance through the prepaid credit card platform.
The payroll card is another prepaid credit card that allows businesses to pay wages, rewards, and reimbursement to employees.
The enterprise can credit the monthly salary of each month in the employee\'s temporary account.
Financial institutions now offer foreign exchange, travel and reward cards as required by customers.
Prepaid credit cards are available for young people, college students and the elderly.
Prepaid credit cards do not require cash to be carried, which helps young people and college students carry cash equivalent to the form of a plastic card.
Parents can also track spending from card time to time.