New Opportunities with Prepaid Cards

How can banks best tap this massive market?

Ray Graber, Jim Bruene

August 2013

: OBR 219



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The traditional debit card, linked to a checking account, has become far less profitable due to government price controls and changing consumer behavior. Stepping into that void is the prepaid card or gift card. It’s a payment mechanism used by more than 80% of the country, yet it’s currently dominated by non-banks. The report details how to change that.

New Opportunities with Prepaid Cards


Prepaid card, debit card, gift card, fee revenue, underbanked, travel card, payroll card, spending controls, product management