Expanding The Use of Prepaid for Underserved Communities
- Date:April 26, 2023
- Jordan Hirschfield
- Report Details: 8 pages, 6 graphics
- PAID CONTENT
Prepaid cards continue to emerge as effective tools to address the financial needs of underbanked communities and cater to the particular requirements of developing underserved communities, including young people and those providing elder care. While the needs of traditionally underbanked individuals—those with less access to financial services—differ from the youth and teen markets, who have monetary access but need new products to control spending, prepaid cards unify the groups through common use and technology. In addition, these card programs offer a range of benefits tailored to these communities' specific needs, promoting financial inclusion and empowerment. Javelin’s research highlights prepaid cards’ current use and benefits for underbanked and underserved communities.
Prepaid cards allow these groups to access the benefits of credit and debit cards without incurring new or additional debt and create new competencies in financial management. In addition, connecting prepaid cards to other technology creates control of funds, preventing misuse and fraud. Beyond the United States, this security includes shifting communities from cash use to more secure card-based use, regardless of banking status.
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