The popularity of open-loop, prepaid cards continues to rise. Industry experts project usage of the cards to increase 10 percent by 2021, to a total of $427.7 billion in annual revenue. According to a Mercator Advisory Group report, young adults make up a large portion of prepaid card users, as they see the cards as a convenient and suitable alternative to traditional banking services. Some prepaid card services even include features such as direct deposits and funds transfers.
To benefit from the increasing use of prepaid cards, retailers should consider retailer-branded prepaid cards, advises PaymentWeek.com. Promoting the use of retailer prepaid cards and loyalty cards in consumers’ digital wallets will help merchants reach the growing demographic of younger consumers who prefer to shop on mobile devices.