Banking on Prepaid

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General purpose reloadable (GPR) prepaid cards, also called GPR prepaid accounts, are a versatile financial tool for consumers. They can be loaded via direct deposit or with cash, and used at ATMs to withdraw funds and at stores to make point-of-sale purchases, similar to debit cards tied to checking accounts. They can also be used to budget or control spending.

This report from the Pew Charitable Trust presents findings from a nationally representative telephone survey of GPR prepaid cardholders—defined as adults who use these cards at least once a month.

It examines their attitudes, knowledge, and perceptions, and compares responses based on whether cardholders have checking accounts. The report finds that many “unbanked” consumers, those without bank accounts, are using prepaid cards like checking accounts, underscoring the need for the Consumer Financial Protection Bureau (CFPB) to finalize rules it has proposed that would extend greater safeguards to prepaid card users.

Check out the full report here:

http://www.pewtrusts.org/~/media/Assets/2015/06/BankingonPrepaidReport.pdf?la=en

Organization Type: Business Enterprise
Article Type: Expert Article
Industry: Financial Technology
Focus: General Info
Location: Statewide

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