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Prepaid credit cards see rapid expansion

August 22, 2012

When it comes to increasing usage of prepaid card programs, many financial institutions will sign agreements with retailers to help promote a payment system.

When it comes to increasing usage of prepaid card programs, many financial institutions will sign agreements with retailers to help promote a payment system at a credit card terminal.

In a recent statement, Dollar General said that it had reached a deal with NetSpend Holdings to distribute the PayPal Prepaid MasterCard card at its locations. Customers at the Dollar General’s more than 8,000 stores can purchase the prepaid card, which also allows users to add more money whenever they like.

“Dollar General is a significant new partner for NetSpend as we continue to grow our retail presence through our partnership with InComm,” said Dan Henry, chief executive officer of NetSpend. “Our retail distribution footprint will grow to a total of more than 25,000 locations once Dollar General is fully deployed with the PayPal prepaid card.

While many use the prepaid rewards cards on a daily basis, some government regulators are seeking to take a look at business practice. The Consumer Financial Protection Bureau said in May that it would be looking for ways to regulate the prepaid debit card industry.

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