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More people using prepaid credit cards

June 29, 2012

According to one recent study, the number of prepaid credit cards is set to increase during 2012.

According to one recent study, the number of prepaid credit cards is set to increase during 2012.

A report from Packaged Facts found that the volume of these types of cards will reach $247.5 billion this year, a 22.4 percent increase. The company’s Prepaid and Gift Cards in the U.S. study revealed that during 2011, the total stood at $202.2 billion.

Part of the reason for the rise in use of the payment method is due to the fact that many are living without traditional checking accounts.

“Prepaid debit cards are positioned as an attractive alternative to traditional bank accounts for certain segments of the population, particularly those without a checking or savings account and those reliant on alternative financial services such as non-bank money orders, check cashing, rent-to-own agreements and payday loans,” the firm stated in its release.

Some of the biggest names in merchant services are also getting into the prepaid reward card sector. In a recent statement, 7-E;event announced that it would be offering PayPay Prepaid MasterCard at its franchise locations.

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