More than just a “pay-before” card, the prepaid ecosystem is fast becoming the platform of choice for fintechs and enterprises looking to innovate their payment solutions.
Growth of fintech landscape in Australia and globally have seen an emergence of new players in the Buy-Now-Pay-Later space, as well as SME and consumer lending. Thanks to its flexible, easy-access infrastructure, prepaid has been leveraged by many fintechs to produce innovative products that are now disrupting the traditional financial landscape that’s largely been dominated by the big four banks.
Accessibility, convenience, security and the Open Banking era has contributed to the immense growth and innovation within the prepaid ecosystem. Figures from RBA in January 2021 shows that there are $954 million have been loaded to 11.3 million prepaid cards issued. Consumers, small businesses, corporations and government agencies are all leveraging prepaid cards to streamline personal and business expenses, corporate disbursements and incentives.
Why Fintechs and Enterprises are Leveraging Prepaid Cards:
Innovative Prepaid Card Use Cases
Here are some real-life examples of how prepaid cards are transforming various industries:
Whether it is physical or virtual cards, single load or reloadable, it’s safe to say that prepaid solutions will continue to be a driving force behind fintech innovation. By the same token, we anticipate that prepaid cards will also become a more mainstream form of payment as consumers and businesses embrace its many unique benefits and use cases.