Prepaid cards are used by all kinds of Americans, though the reasons differ depending on who the users are, Ebony’s money coach writes. While many people choose prepaid cards because they don’t have access to bank accounts, others are choosing them because they are familiar with traditional accounts.
So overall, a growing number of people – especially higher income individuals – appear to be consciously choosing prepaid cards, not out of ignorance or lack of access to other financial products and services, but due to a desire to avoid debt and decrease the amount of bank fees they pay.
Banks have taken notice of this trend. Recently BBVA Compass launched a prepaid card aimed at customers who want a spending tool other than debit or credit cards. The use of prepaid cards by people of all walks of life show the value of this kind of payment and should serve to give regulators notice that they should not create one-size-fits-all rules for the industry.
Overview by Ben Jackson, Director, Prepaid Advisory Service at Mercator Advisory Group
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