Camila Johnson
Prepaid cards are a useful financial tool for both consumers and businesses across various industries. Prepaid cards are cards that are loaded with a certain amount of money in advance, that consumers can spend as they wish at participating businesses.
Prepaid cards offer consumers a variety of benefits and are often used for their security and flexibility. Although prepaid cards may look like debit and credit cards, they are very different. Debit and credit cards are typically linked to a bank account and prepaid cards are simply loaded with money that can be used until it runs out. Because of this, prepaid cards are popular for a variety of purchases. Let’s review the top industries currently accepting and using prepaid cards.
Retail Industry
The retail industry is one of the largest industries that currently accepts prepaid cards. Huge businesses like Walmart, Target, and even Amazon offer their own unique branded prepaid cards. With a prepaid card, consumers can shop online or physically in stores and purchase whatever they want using the balance on their prepaid card.
Within the retail industry, prepaid cards are often given as gifts to family and friends or loaded with a certain amount in advance so that consumers can stick to their pre-determined budget. For businesses, prepaid cards encourage consumers to purchase from their stores and foster brand loyalty with perks like promotions and discounts.
Gaming and Entertainment
Another huge industry using and accepting prepaid cards is the gaming and entertainment industry. Within this industry, prepaid cards are typically used to pay for digital content and services.
For video gamers, platforms like PlayStation Network, Xbox Live, and Steam all offer prepaid cards that gamers can use to purchase games and more online. For casino gamers, prepaid cards come in handy, helping budget funds and ensuring the best experience when gambling online. Techopedia author and casino expert Sergio Zammit shares that a number of sites that accept prepaid cards have been thoroughly reviewed by Techopedia to provide gamers with the pros and cons of each platform.
Beyond gaming, entertainment platforms like Netflix also accept prepaid cards. Consumers can pay for their subscription services using their prepaid cards ensuring their bills are paid promptly and they have access to the latest movies and TV shows.
For many consumers, the best part about prepaid cards is that they are not linked to a bank account, so they are very safe and easy to use no matter if funds are being spent to stream movies, wager at anonymous casinos, or play video games online.
Hospitality and Travel
In travel and hospitality, prepaid cards are often used to secure bookings and pay for expenses. When traveling, especially abroad, tourists want to protect their financial information. It’s easy to misplace a debit or credit card or have a wallet or purse stolen when visiting a new place, and prepaid cards reduce this risk.
If a traveler tops up their prepaid travel cards with a certain amount, they can spend those funds in the same way they would use a debit or credit card, however, if the card is lost or stolen, the only funds the card owner stands to lose are the funds on the card. Because prepaid cards are not linked to bank accounts, no further funds can be collected or accessed, making them more secure.
Telecommunications
Big-name telecommunication companies are known to use and accept prepaid cards, making it easy for their customers to settle their bills and pay for services in advance, like minutes or texting. Companies like Verizon and T-Mobile offer prepaid cards and plans that allow customers to pay in advance for their data, phone minutes, and texts.
Within the telecommunication industry, prepaid cards allow users to manage their spending and avoid the hassles and expenses of going over their allocated minutes or data.
Food and Beverage
Within the food and beverage industry, prepaid cards have grown extremely popular. In this industry, prepaid cards are usually given and received as gifts and occasionally as incentives for employees who work within the food and beverage industry.
Countless restaurants, cafes, and fast food shops accept pre-paid cards. For consumers, prepaid cards make it easy, and fun, to go out for a meal when the balance has already been loaded onto a prepaid card. For businesses, prepaid cards are a revenue generator, especially around the holidays when shoppers are looking to buy gifts for one another.
Transportation
Within large cities, transportation departments are increasingly adopting prepaid cards for public transportation or tolls. These cards allow residents to prepay for a certain number of bus rides, for example, and then simply swipe their card each time they jump on the bus for a ride to work. This system is a win-win for both passengers and transportation departments. For passengers, it allows budgeting for transportation and also alleviates the need to carry cash or other payment types. Experts also believe it fosters financial inclusion. For transportation departments, prepaid cards mean that public transport drivers don’t need to hassle with collecting payment from each passenger. Overall, prepaid cards within this industry streamline operations for everyone.
Non-Profit Organizations
Within the non-profit sector, prepaid cards are often used for fundraising efforts. Prepaid cards offer a certain amount of flexibility and are also a secure way for individuals to donate funds, no matter what non-profit cause they are supporting. Non-profits like the American Red Cross and UNICEF both accept prepaid card donations. These prepaid cards are then used to cover operational costs and other needs. For those who want to donate anonymously, pre-paid cards are ideal.
