Self-Use Drives Prepaid Products

Consumer prepaid cards are often referred to generically as “gift cards.” This terminology assumes that the cards are transferred from one individual to another for a single-use opportunity. In actuality, most prepaid cards receive their value from an individual deciding to use the product for their own use. 

Sectors such as payroll, benefits (like flexible spending accounts and health savings accounts), and government programs already focus on self-use. These sectors can offer instruction to other prepaid sectors to expand their market beyond traditional gifts. In fact, commercial incentive programs can project how to use a third-party purchaser to draw in a potentially loyal customer through prepaid programs. Shifting from the idea of gifting to stored value drives a culture of loyalty and long-term customer relationships centered on self-use prepaid accounts.