Migrant workers and temporary workers are often reluctant to open a bank account. This is because they may not have the required documents, or they may not meet the minimum balance requirements. However, a prepaid card can be a great alternative for these workers. Prepaid cards can be used anywhere that accepts credit or debit cards, and they can be loaded with money as needed. This makes them ideal for workers who are paid in cash. In addition, prepaid cards usually have low fees, making them more affordable than traditional bank accounts.
Israeli fintech Rewire acquired prepaid card provider Imagen, broadening their portfolio and exemplifying the applicable use of prepaid for migrant and temporary workers and formalizing their previous partnership relationship. Sophie Shulam details the acquisition in Ctehc:
“As a result of the acquisition of Imagen, Rewire will allow tens of thousands of migrant workers in Israel who use its app to receive their salaries from employers with the rechargeable card, digitally perform all financial transactions offered by the app in Israel and of course use it as an instant debit card for transactions in Israel and abroad.”
Beyond their localized application in Israel, the organization provides additional services in Europe that could potentially be replicated in other geographies:
“In Europe, the company provides additional services, including a payment account (IBAN), a family account, a credit card (debit), local and international money transfers within Europe, insurance for immigrants and their families, a communication package and physical money deposits.”
The pairing of Rewire and Imagen highlights the need to provide temporary workers, migrant workers, and other groups that can have difficulty with traditional banking a path to easier access to their money. The addition of prepaid to financial services provides a better path to inclusion for the target audience.
Overview by Jordan Hirschfield, Director, Prepaid Advisory Service at Mercator Advisory Group
