The Growth of Prepaid, The Decline of Cash

A world without

Cash (Photo: BlatantWorld.com)

cash is something that is hard to imagine, perhaps, we won’t see it in our lifetime. Granted, it may well happen but not in the next few years. However, there is already an evolution going on in regards of how consumers to pay for items. Credit cards and debit cards are the go-to options when paying for transactions in stores, restaurants, and even in the subway. Some may have even gone so far as to not carry cash around at all anymore. All they have is something that’s plastic in their back pocket. Chicago resident Louise Collis has taken this to heart, leaving behind cash and only using her cards. But she is not alone. 

There are times where you may find yourself going weeks, months, maybe even a year without even using cash. The usage of cards, now, is based upon the economy. Cash is still in high use because of the current recession from which we are recovering. But as the economy improves, the usage of credit cards will also increase. There are stores now that only accept cards or gift cards. After consumer complaints, commerce has listened. Many stores, offer consumers the opportunity to buy gift cards with cash and then use the gift cards to purchase items in-store or elsewhere. Consumers get the best of both worlds, this way - no bank account or credit needed.

The exchange of debit, and credit cards for cash currency happens all the time between people in more affluent societies.  But there are many stores that are not rushing at the chance to cater solely to them. WalMart is giving customers the opportunity to pay for items online with cash. 


It's not just stores either. From Japan to the United States to Mexico, people are using paper currency less. Whether it's transit or payroll, tax returns or remittances, many more people are using pre-loaded cards or apps for transactions without cash money ever coming into play.


Though I believe this country is far from removing cash all together, Sweden has become a cashless society where churches, yes, churches, accept your cards now instead of paper money. Could the U.S. possibly live in a society like that? Absolutely, but to believe that this will happen a year, ten or twenty years down the line, may be a bit of a stretch. It is an interesting notion to think about and that will be explored further. 

About the Author


Adam Wells studies English at Pace University and can be reached at AWells@IIRUSA.com. 

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Consumers Turn to Prepaid for a Debt-Free Holiday Season

Judging by the lines outside of Walmart and Target this Black Friday it seems as if consumers are en route to spending the same if not more money than they did last holiday season. What's interesting is that consumers are moving away from creating more debt by staying away from credit cards. If you don't believe me you can take a look at these two different reports that proves this theory.

This article in MarketWatch discusses how a recent online survey conducted in November by Harris Interactive for Green Dot finds that most holiday shoppers are shunning away from using credit cards as their primary payment source. The biggest payment sources this holiday season are prepaid cards, debit cards, checks, and cash. It's evident that consumers want more financial control and are making strides in creating a debt-free holiday.

A separate study conducted by the Consumer Federation of America detailed in this article on CreditNet shows most consumers showed an uncertainty in paying off credit card debt, and this is the reason for the sudden switch. So however you position it consumers will be turning to prepaid cards to avoid hefty finance charges, atm fees, and late payment fees.

Do you plan on using prepaid for that flat screen purchase this holiday season?

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nFinanSe and Walmart Head to Head in Reloadable Prepaid Card Pricing

This article in Convenience Store News highlights how nFinanSe has lowered the price of its reloadable prepaid to $3 from $5.95, to match a change Walmart had previously announced of lowering its reloadable prepaid card to $3 from $8.94.

The goal, according to Jerry R. Welch, chairman and CEO of nFinanSe,is to encourage mass usage. It is estimated that the reloadable prepaid marketplace will double to $14 million by 2014.

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WalMart MoneyCard

According to Bankaholic, they see the WalMart MoneyCard as the best value for a prepaid card. They state it has the lowest fees, all of which are waived if they are direct deposited, which is important in today's economy. They also state that the deposits are FDIC insured. What do you think? Is WalMart the best prepaid card for consumers? What do other cards offer that WalMart doesn't?

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Walmart cutting prices on MoneyCard

Walmart will be cutting the price of its prepaid MoneyCard to $3, down from $9. They're looking to appeal to customers who aren't comfortable with using credit cards in the current economic situation, and are looking to build brand loyalty among its shoppers. Since introducing the card in 2007, they've sold over 2 million and $2 billion has been loaded onto the prepaid cards.

Source: Reuters

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