Prepaid Card: Collaborations and New Launches to Raise Utilization to People

Prepaid cards are being increasingly used for carrying out digital payments. Market players collaborated with tech firms and other players to offer their prepaid cards aimed at fulfilling the needs of specific types of users and raising their market share. The collaboration between the fintech firm and other organizations aims to launch a prepaid card that would empower women entrepreneurs. In addition, the new prepaid card aims to fund legal sports betting for users and provide ease in carrying out transactions related to banking and transportation. Sustainability is also a focal point in launching a new prepaid card and providing secure payments. The demand for prepaid cards that offer convenience, ease of use, and security will increase in the coming years. According to the report published by Allied Market Research, the global prepaid card market is estimated to reach $6.87 trillion by 2030. Following are some of the activities taking place across the world. 

Collaboration is one of the major strategies adopted by market players to offer services that would ease up payment collection and loan repayments. Visa, Mahila Money, and Transcorp collaborated to launch Mahila Money Prepaid Card. Commenting on the launch, Mahila Money highlighted that this card will help women entrepreneurs process digital payments more effectively than before. According to the survey conducted by YouGov, around two-thirds of urban women in India utilize digital payments. However, less than one-third of women utilize internet banking. So, these organizations joined forces to close the gap to provide ease in using a bank account with increased safety, flexibility, and convenience. 

The newly-launched prepaid card will help women entrepreneurs collect payments through a digital medium and increase working capital. Moreover, the users will get rewards, incentives, and cashback. Sairee Chahal, the Founder of Mahila Money, outlined that the collaboration aims at developing highly customized products and surge the number of digital and financial services users. The card will provide ease of use for first-time digital entrepreneurs.

The collaboration strategy continues to be adopted by market players as they aim to expand their presence and raise the customer base. The New York-based flexible consumer payment platform developer TAPPP collaborated with the sports-betting and iGaming operator BetMGM to expand the BetMGM prepaid card distribution network. This collaboration is expected to double the number of stores possessing prepaid cards. The possession of the BetMGM gift card enabled users to fund their accounts in states in which the betting is legal. 

Matt Prevost, the Chief Revenue Officer at BetMGM, outlined that the launch of prepaid sports betting cards led them to taste success in the legal sports betting market. The expansion aims to provide an easy and responsible way of funding BetMGM accounts. This expansion will raise the distribution network by adding the grocery segment. The collaboration strategy for expanding services will help gain major market share and explore the potential in various untapped markets. 

Along with collaborations, the launch of new prepaid cards continues to gain momentum as market players aim to expand their consumer base and raise their market share. Paytm Payments Bank Limited (PPBL) launched a prepaid card. This card is known as the Paytm Transit card, and it is directly linked to the Paytm wallet of the user. To use this card, users need to recharge their Paytm wallet. It eliminates the need to create a separate account. This card will enable users to fulfill their banking and transportation needs. 

PPBL developed a digital process for applying, recharging, and tracking the transactions in the Paytm app only. This card can be delivered to the user's doorstep or availed through sales points at different designated locations. The company made this card available on the Delhi Airport Express line and Ahmedabad Metro. It can be used for the Automatic Fare Collection (AFC) and save time availing of tickets. The launch of such new cards aims to provide convenience and time-saving benefits. 

The launch of prepaid cards continues, and the new card is developed by keeping sustainability at a focal point. CarbonPay, a sustainable fintech platform, launched the corporate prepaid card CarbonPay Business Ctrl. For businesses in the U.S. and the U.K., this card will help offset the carbon footprint with every transaction. When a user spends $1.50/£1, the company will offset 1kg of CO2 without incurring an extra cost. 

Rory Spurway, the CEO, and Founder, CarbonPay, highlighted that offsetting CO2 every time a user makes a payment will help fight against climate change. The company partnered with a Sustainability-as-a-Service platform, ecolytiq. This company monitors the carbon footprint with each purchase and enables businesses to track the environmental impact of their spending behavior. These analytics help businesses in making data-led decisions for lowering their carbon footprint. Visa and Stripe will power these cards to offer secure payments to the users. The launch of such innovative cards will help raise the market share as users are becoming eco-friendly and adopting digital payments.  

This is a sponsored post by Allied Market Research and does not reflect the views of ChargePlate.in