Friday, October 3, 2008

Visa’s ReadyLink Prepaid Card Network: An Opportunity for Financial Institutions

Recently, we’ve posted about how Visa is looking to expand its Visa ReadyLink prepaid card reload network to ATMs that accepts deposits without envelopes. Currently, prepaid cards are generally reloaded through direct deposit programs or through merchants that accept cash and then credit the amount to the prepaid card.

This program is particularly interesting because of the amount of unbanked people that financial institutions can attract. Cardholders would simply swipe their card, and then the cash that they want upload. After a few simple prompts, consumers would receive a receipt stating the updating value on the card. As with regular ATMs, consumers would pay an interchange fee in which Visa would get its standard network fee from. ATM owners would also set their own pricing for the consumer. It will be interesting to see the amount of customers banks will be able to convert from Visa’s reload network.

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