Over the past 12 months, three-quarters of consumers have either used, purchased, or received Prepaid cards according to the FinTech Times. The rise in popularity, particularly in younger generations, suggests that consumer habits are changing, and people are looking for more control and flexibility over their money during the cost-of-living crisis.
Since 2009, allpay Limited have pioneered the use of Prepaid cards across the public sector, delivering disbursement solutions to government, local authorities, housing associations and charities. Its Prepaid solutions range from benefit disbursements to emergency payments, enabling more inclusivity for different scenarios and needs of customers and clients.
What is a Prepaid card?
A Prepaid card is a preloaded card that can be used to pay for goods and services up to the value loaded on the card. Goods and services can be purchased at the point of sale, online, or over the telephone. All transactions made using the card are recorded and monitored, and there is no credit or overdraft facility.
Prepaid cards have the similar physical appearances to credit or debit cards. When making payments with a Prepaid card online, you will need the card number, your name, expiry date and CVC from the back of the card.
The benefits of a Prepaid card
As well as consumers taking advantage of Prepaid cards, local authorities and housing associations have also benefitted from the accessibility of having Prepaid cards, with one of the main benefits being the ability to recoup and reallocate unspent funds, maximising cost-efficiency.
The use of Prepaid cards has significantly reduced administration times, with spend being audited electronically, reducing the amount of paper processing. Businesses are also able to monitor how and where funds are spent, increasing accountability. It is also possible for businesses to load cards instantly online, providing cardholders with funds quickly in an emergency
Carrying a prepaid card can be safer than carrying cash, making it a good option for people travelling. Prepaid cards can also offer consumers a convenient way to budget for their weekly and monthly expenses, by only loading what they can afford to spend.
allpay’s Prepaid solution
allpay have developed a multi award-winning Prepaid card solution which offers a secure, accessible payment method for those in need of urgent funds for point-of-sale transactions, online purchases, contactless and chip and PIN payments and ATM withdrawal.
In 2022 alone, allpay Prepaid cards were loaded more than 4,248,817 times, with a total value of over £328,700,000. The dynamic service allows organisations to react quicker than traditional payment methods whilst being able to monitor disbursement closely. This allows organisations to ensure their users are able to securely access funds, helps individuals and prevents misuse.
With their prepaid card solution, allpay has supported local authorities with payments to Ukrainian refugees, whilst being mindful of the language barrier by offering the scheme information in both English and Ukrainian.
During the COVID-19 pandemic, allpay specifically designed a Prepaid card programme to support councils who wanted to disburse funds to those experiencing hardship as a result of the outbreak. With a set of pre-defined limits, configuration, and the ability to fast-track a programme approval, allpay could make these programmes live and operational within two weeks of receiving instruction.
Reducing the cost and administration of paying out funds, allpay’s Prepaid solution streamlines accounting efficiency for organisations and offers cardholders banking lite features, including direct debits and standing orders. The application of prepaid programs is expanding rapidly.
To learn how new Prepaid solutions can increase your payments offerings and market opportunities, click here.