Closed-Loop Prepaid Cards: What Sets Them Apart

  What are prepaid cards? In the history of payment methods, nestled between the credit card boom of the mid-20th century and the current wave of payments digitalization, there was a different trend that emerged in the 1990s: the prepaid card. First appearing in the ‘70s, closed-loop prepaid gift cards are issued by a business and represent a liability. Funds from these gift cards are kept by the business and can be spent to sustain its operations. Cardholders can only spend up to the amount of money loaded in advance onto the card, hence the term “prepaid.” More recently, businesses have [...]

By Adam Winograd|2022-03-28T09:45:55-04:00January 27th, 2022|Tags: , |

Every Credit Card Executive Needs to Know the Nuances of Asset-backed Securities

GPR prepaid debit cards were developed to provide consumers who are underbanked and unbanked with a method to perform financial transactions in a modern form utilizing a network-branded card rather than by paying in cash. This was not only for convenience and safety purposes but also for financial inclusion. The prepaid debit card has not only accomplished this for the underbanked and unbanked (Figure 1) but has become a mainstream financial service product that is utilized by persons no matter their banking status. Figure 1: Financial inclusion has improved significantly since 2015. Source: Board of Governors of the Federal Reserve System, “Economic Well-Being [...]

By Mercator Research|2021-07-22T14:47:20-04:00February 28th, 2019|

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