CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Jobs
  • Contact

News

Home » SPONSORED BY Envisant
Sponsored Content
Sponsored Content

How digital technology maximizes prepaid programs

The essential role of tokenization and mobile wallets.

October 10, 2022
Libby Calderone
No Comments
2022_10_Libby-Calderone
Envisant President/Chief Operating Officer Libby Calderone.

Experts predict the compound annual growth rate for the prepaid market from 2021 to 2022 will reach 10.6% worldwide, according to The Business Research Company. It is expected to keep growing at a rate of 9.7%, reaching $22.11 billion in 2026. The speed and convenience of digital technology along with growing consumer concerns about privacy and fraud lead this growth. To be relevant to the needs of members and potential members, credit unions must be aware of the relationship between these trends.

Who is using prepaid cards? An increasing number of millennials, freelancers, and businesses are finding prepaid cards an attractive solution to their payment needs. According to Edison Research, nearly a quarter of Americans engage in some type of freelance work. Many prefer to receive payment through prepaid cards that allow them to receive compensation faster than traditional methods and don’t require them to give personal account details.

Content Sponsored By:

Envisant

Other markets are also increasingly drawn to prepaid cards. Businesses utilize virtual prepaid cards for online payments and for budgeting department expenditures. Gift cards are also a well-received employee incentive. Millennials, despite having a large collective spending power, are highly budget-focused and like the control that prepaid cards give them over their spending. Prepaid cards are also popular among the underserved, giving credit unions an opportunity to reach out to this market.

Digital technology has done much to enhance the speed and security of prepaid cards. Virtual cards are making issuance even faster and more cost-effective. Tokenization adds another level of security and ease of use. Randomly generated tokens are stored by stores and e-commerce sites while cardholders’ private details remain in one secure database. This technology also allows shoppers to easily switch between online and in-person shopping through mobile wallets.

For credit unions looking to build their prepaid programs, this digital technology is vital to relevance and growth. In 2021, nearly 45% of e-commerce transactions used mobile payment, and experts are expecting that a third of all point-of-sale transactions will be made with mobile wallets by 2024 (Trading Platforms).

This means credit unions need to have a way to ensure their prepaid cards work smoothly with as many mobile wallet providers as possible. One way to accomplish this is through a robust prepaid app that makes pushing your prepaid cards to mobile wallets quick and seamless. This convenience—combined with other features that allow cardholders to easily check their balances and offer added security, like identity verification and card controls—helps a credit union’s prepaid card compete in the marketplace.

Prepaid cards and technology can be a powerful way for credit unions to connect with current members and reach out to new markets. The most effective use of prepaid cards will harness the advantages that technology offers to delight cardholders and compete in an increasingly digital world.

Libby Calderone is president and chief operating officer at Envisant.

KEYWORDS digital member experience mobile banking operations technology

Post a comment to this article

Report Abusive Comment

Credit Union Magazine: Spring 2023

Spring 2023

Credit Union Magazine’s Spring 2023 issue features the 2023 Credit Union Heroes and examines CUNA-League advocacy priorities, board leadership, the impact of financial well-being efforts, fee-related compliance issues, predictions for the year ahead, and more.
Digital Edition •  Subscribe

Trending

  • CUNA Mascot Madness: Voting opens for East Region

  • Mascot Madness: East winner crowned; Midwest voting opens

  • League leaders highlight credit union difference, safety, soundness

Tweets by CUNA_News

Polls

CUNA Mascot Madness: Which Midwest Region mascot is your favorite?

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2023 Credit Union National Association | ADA Compliance Notice & Legal
Email Us