Security, convenience, and more: the top 6 benefits of prepaid cards
The last decade has seen huge changes how we pay, all over the world. Global markets have experienced vast growth in digital payments along with an increased demand for greater convenience, speed, and security that traditional payment methods can't match. Understanding the part prepaid cards play in filling that niche is integral to keeping up with the market and offering customers the modern experience they demand.
Prepaid cards have been around for decades, perhaps most familiarly as the merchant-specific gift card. Today, prepaid cards can be configured to be spent anywhere, and are available in both physical and virtual forms. Physical cards function much like debit cards, usable for in-person transactions, online purchases, and ATM withdrawals, whereas virtual prepaid cards exist purely digitally. Virtual cards are instantly issued, ideal for secure online shopping or managing recurring subscriptions, and eliminate the risk of physical loss or theft inherent with traditional cards. Many virtual cards can also be seamlessly integrated into mobile wallets like Apple Pay or Google Pay, allowing for convenient contactless payments in physical stores.
The prepaid market is taking off
The global prepaid card market size is projected to increase from $4.3 trillion in 2025 to $21.46 trillion in 2034, with a CAGR of 19.54%. The shift towards digital and mobile banking solutions has popularized them as an appealing option to consumers seeking flexibility in an increasingly diverse market. Features like controlled spending limits and enhanced security measures like encryption and fraud monitoring make prepaid cards a versatile solution for various types ofspending needs and financial management goals. They also serve as an essential tool for financial inclusion by offering an accessible option for underbanked and unbanked populations who often face barriers to accessing conventional banking services.
North America and the APAC region are leading the way in prepaid card market growth, along with large increases in Western Europe. Additionally, governments in the APAC region (China, Japan, India, South Korea) have promoted companies' adoption of prepaid card solutions for enhanced security, transparency, and consumer protection. This positions the APAC region as primed for a major increase in prepaid card users.
The 6 key benefits making prepaid cards indispensable
- Security: Prepaid cards enhance security by reducing the risk of fraud and identity theft. Unlike traditional cards directly linked to bank accounts, prepaid cards limit financial exposure, as only the preloaded amount is at risk if a card is compromised. Many providers offer robust fraud protection features like unique virtual card numbers for each transaction and the ability to instantly freeze or cancel a card, minimizing the impact of potential breaches.
- Agility: Prepaid cards can be launched and scaled quickly. Whether it’s launching a new card for an unexpected market opportunity, meeting a new regulatory requirement, or adapting to changing customer preferences, prepaid card offerings can be configured and deployed in days or weeks rather than months.
- Control: Prepaid cards empower both consumers and businesses with greater financial control and budgeting capabilities. By requiring funds to be preloaded, they prevent users from overspending and eliminate the risk of debt and overdraft fees. Prepaid cardholders can set spending limits, categorize expenses, and track transactions in real-time for informed financial management. For businesses, prepaid cards allow for precise budget allocation and streamlined expense management, particularly for employee spending.
- Convenience: Prepaid cards offer unparalleled ease of use: they can be obtained without a credit check or bank account. Many prepaid cards are integrated with mobile wallets and online platforms for seamless transactions. They also streamline financial processes for businesses by eliminating manual expense reports and facilitating automated reconciliation.
- Innovation: Prepaid cards are at the forefront of financial innovation, supporting the development and adoption of new technologies and business models. They facilitate growth in e-commerce, digital banking, Web3, and cryptocurrency by providing a secure and adaptable payment infrastructure. Prepaid cards can be configured for specific use cases, including travel cards with multiple currency options, payroll cards for disbursing wages to employees, and gift cards for promotions and incentives.
- Accessibility: Prepaid cards offer an essential financial lifeline for the underbanked and unbanked populations, providing a gateway to financial services without the need for traditional bank accounts. They enable these individuals to participate in the digital economy, receive payments, and manage expenses, promoting greater financial inclusion.
Prepaid cards any way you want them
Episode Six provides a way for businesses and institutions to harness the potential of prepaid cards, from virtual to physical, one-time vouchers to multi-use cards. Along with consumer cards, our platform is designed to serve a diverse range of industries, from insurance, travel, government and crypto to consumer fintechs, B2B fintechs, gift card providers, digital banks, and transit operators.
We offer the capability to build a wide range of specialized prepaid card products, from powering the future of open or closed-loop transit systems to enabling direct employee payouts for the burgeoning gig economy. Businesses can launch modern gift card experiences, enable crypto transactions globally through ATMs and merchants, streamline insurance payments and payouts, and create online e-vouchers for government, travel, and insurance companies.
Our programmable controls enable the customized solutions you need, without the limitations of legacy systems. Quickly bring your prepaid cards to market, while adhering to compliance requirements and satisfying customer needs.
The difference is night and day: Episode Six prepaid cards
A-Tono, an Italy-based multi-faceted company, sought a provider to expand their gift card offerings. A-Tono selected E6’s cards solution because they valued the technology, as well as the migration experience and the cost. Orazio Granato, A-Tono CEO, says that partnering with E6 granted A-Tono complete control and ownership of the product. He also notes the unique flexibility of the platform, and the E6 team’s vast knowledge of the European market. The transition was completed without disrupting A-Tono's end customers, successfully providing a modern platform. Granato stated, “The difference is night and day. The team completely understood our requirements and needs. We feel that E6 are like part of our team. At every stage of the migration, E6 was calm, clear and communicative. As a result, it went smoothly, and we were extremely happy with the outcome.”
If you’re ready to create prepaid cards that outpace the competition, we’re ready to make it possible. Contact us today.
About E6
Episode Six is a global provider of enterprise-grade card issuing and ledger infrastructure for financial technology companies, banks, and brands. Episode Six delivers the innovative capabilities needed to compete with disruptors and lead the market. Flexibility, adaptability, and resilience are built into the core of Episode Six's platform, ensuring clients maintain a market-leading position. Episode Six operates in over 45 countries, powering 70+ enterprise customers globally, with an expanding team located in the US, Canada, UK, Europe, Japan, Singapore, Hong Kong, Australia, and India. Investors include HSBC, Mastercard, SBI Investment Co Ltd, Anthos Capital, Avenir, and Japan Airlines.
E6 Team
About the Author
Episode Six provides financial institutions with solutions for legacy payment stacks that aren’t fulfilling the needs of an expanding industry. We are a global provider of enterprise-grade payment technology and ledger management infrastructure for banks that need to keep pace with disruptors and evolving consumer preferences.