TMG White Paper Explores the Value of Prepaid Cards

A couple of experts from the revered payments processor TMG has issued an informative white paper as an addition to the series on the future of prepaid cards. Jeff Falk, TMG director of payments product manager for prepaid, predict the aggressively expansive payments channel will become increasingly popular with members of the emerging so-called “contextual consumer” segment.

“Heavily reliant on connected mobile devices, contextual consumers have become accustomed to the convenience and instant gratification of one-click (and increasingly, no-click) purchasing,” write Falk and Stein. “The Internet of Things (IoT) is poised to satisfy this growing demand for effortless finding, ordering and purchasing of everything from laundry detergent and paper towels to savings accounts and investment plans.”

A lot of contemporary digital payment solutions, such as Apple Pay, PayPal or Pay with Amazon, depend on your run-of-the-mill credit and debit cards to authenticate and fund discrete financial transactions.

“Yet not every consumer who may be served by the IoT has – or wants to have – a credit or debit card. Enter prepaid,” the authors suggest in the paper.

Falk and Stein are open about the fact that acceptance of prepaid cards is hit and miss in the currency digital payments marketplace. However they do anticipate acceptance to increase as digital payments become more commonplace and demand for prepaid options to steadily increase.

To check out the full whitepaper, go to www.tmg.global.