TSYS and NetSpend Say Banked Customers Drive Prepaid Growth

In a great article Chuck Harris, President of NetSpend, talked about the continued growth of prepaid.  He sees more growth in the future, and points out it is not because of “unbanked” use but customers who use prepaid for online or in-store shopping security, budgeting control, avoiding the risk of overdraft fees and sharing of a managed payment device with youth or others.  A big opportunity he states is for liquidity options for prepaid users that want them.

“We see tremendous growth here for consumers….with their bank account but who use prepaid for another reason, whether its security or some other driver.”

                  Chuck Harris, President, NetSpend

To be specific, exploding prepaid card use is taking transactions, revenues and payment relevance away from bank checking accounts and debit cards.  Your costs are rising is providing accounts, but your customer revenue is leaking away to others like prepaid cards.

How do you fight back?  Offer your own account with the features some consumers want:  1) no overdraft fees ever, online and in-store enhanced security, budgeting by card transaction and online liquidity.  Our turn-key service for community and regional banks is called PaySound.^®