Thursday, March 19, 2009

Prepaid Cash Cards are on the Rise while Credit Cards Decline

The NY Times recently wrote a piece discussing the rising popularity of prepaid cash cards. In the article James Flanigan highlights how the cards, which have the MasterCard, Visa, or Discover logos, have become more like “portable checking accounts” where consumers can load up on deposits made at retail outlets instead of banks.

He also mentions that companies like Green Dot Corporation, NetSpend, and nFinanSe Inc. are highly involved in the distribution and management of the accounts, handling customer service and providing computer servers and software. The number of “unbanked” and “underbanked” is growing at record pace throughout this economic crisis, and so it is no wonder where there is a sudden decline in credit cards. Do you think that this trend will continue for quite some time?

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