Prepaid cards are becoming increasingly popular among under-banked consumers. As a result, companies have been rolling out a range of prepaid cards that appeal to a variety of financial interests, USA Today reports.
Prepaid cards are becoming increasingly popular for several reasons: The number of consumers forgoing traditional banking is rising, prepaid cards often tout lower fees, and big banks are turning to them as a way to compensate for lost revenue from recent industry regulations.
According to a 2011 report by the FDIC, more than 20% of U.S. households are under-banked, meaning they do not fully rely on traditional services such as checking and savings accounts.
As the prepaid market grows, so too does the number of bank-like features that many of them offer, such as mobile apps and bill pay. (NACS: www.nacsonline.com)