Intevacon has expanded into the Prepaid Card business, giving marketers more opportunities to capture revenue while meeting the needs of their customers. As noted in the latest blog, the popularity of Prepaid Cards only continues to grow, and the demographic of Prepaid Card users adds a new opportunity for marketers.
While the opportunity of prepaid card services is very large—$309B was loaded onto U.S. closed-loop prepaid cards in 2012—now is the time for marketers to take advantage of the prepaid trend and educate their customers on the value of making purchases with the Intevacon Prepaid Card.1
A recent article titled “Banks Can’t Afford to Miss the Prepaid Opportunity” only highlights the potential revenue associated with Prepaid Cards.1 Banks are viewing the Prepaid Card as an opportunity to generate fees for activities such as card activation, interchange fees, and reloading. The fees imposed by banks have instigated a new segment of consumer—the “debanked”.2 According to an Aite Group report, there is a $1 billion dollar prepaid card opportunity with these “debanked” consumers who are looking for alternative payment methods from traditional banking accounts.2 These “debanked” consumers are looking for alternative payment methods like the Intevacon Prepaid Card.
While prepaid card users have historically been viewed as the unbanked, underbanked, and now the “debanked”, there is also a large percentage of the millennial generation, 41%, who say they are likely to use a general purpose reloadable card instead of using a bank account.3 Not far behind, 24% of individuals aged 35-49 make the same claim.3 Even better, 70% of atm users buy prepaid cards, and 9 out of 10 atm users who buy prepaid cards would prefer to purchase their prepaid card from a non-financial institution such as a convenience store.4 In addition, a study by Synergistics Research Corp found that 23% of consumers are likely to buy their prepaid cards at a convenience store.3
As the demographic of Prepaid Card users has expanded, so have the purposes for purchasing a prepaid card. Many consumers view the prepaid card as an opportunity to budget, a way to manage money for teenagers, or an alternative to holding a bank account. Businesses can also benefit from the Intevacon Prepaid Card by using the prepaid card as an incentive for engagement. The Intevacon Prepaid Card is also a great alternative for customers who want to carry a fleet card but do not qualify for credit. The popularity of prepaid cards only increases the marketing capacity that can be applied with the Intevacon Prepaid Card.