DES MOINES, Iowa (4/16/13)--The Members Group (TMG) has added a new design option for its ATIRAreload Visa prepaid card. The plastic is now offered in a black background with silver lettering, in addition to the green background design already available.
The new design was created to appeal to a wider demographic and to keep the card top-of-wallet with cardholders, TMG said.
"TMG's financial institution clients recognize the potential for prepaid to reach new audiences, including wealthier wallets and Gen Y customers," said Konrad Christensen, TMG retail payments product manager. "Although prepaid has traditionally targeted the underserved, there is new evidence that mainstream consumers are attracted to the product. The new design option for the TMG ATIRAreload prepaid card will allow our clients to market to more potential cardholders."
The prepaid market climbed nearly 20% in 2011 to $483 billion, according to the Mercator Advisory Group. It is expected to jump to nearly $600 billion in 2013. Research also indicates the growth isn't limited to underserved consumers, said TMG. A report from the Aite Group found 33% of prepaid users have incomes above $45,000, and 15% of these cardholders earn more than $70,000. The research also revealed more than one-third of prepaid cardholders have college degrees.
Consumers are attracted to prepaid cards because they can limit their spending to the amount on their cards, avoiding high-interest rate fees and costly overdraft charges, Christensen said. Many credit union members also choose prepaid cards as a safeguard against identity theft and fraud, and to reduce the need to share sensitive information about their personal checking or savings accounts, he added.