New Released 2016: Global Prepaid credit card Market Analysis, Statistics, Industry Reviews and Forecast 2021

Prepaid credit card
Prepaid credit card

Prepaid credit card

Prepaid credit cards though termed so, are not exactly credit cards, as they provide no credit to the cardholder. The card allows the customers to spend money that they have already deposited in the account concerned.

These cards are powered by MasterCard, Visa, American Express, etc., making them acceptable at cash counters. As per Mercator Advisory Group, consumers deposited almost $28.6 billion in Prepaid credit cards in the year 2009 and this amount is estimated to reach $168 billion by 2015. Large number of credit card consumers are been shifting towards prepaid cards as per recent surveys.

Proper handling of cash and managing expenditure is a primary factor for consumers choosing prepaid cards over credit cards. However, lack of real credit granted by the card providing financial institutions is a major restraining factor.

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