HP Opens New Market Opportunities to Banks with Prepaid Card Services

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Hewlett-Packard announced that it has created a software product to help banks offer prepaid cards. The announcement comes at a time when more banks than ever before are considering getting into the prepaid business as a way of reaching new clients in the unbanked market, and is a way of offering a product that will make up for lost revenues from reduced interchange on debit cards. The company is looking to extend its credit and debit businesses, and while this step into prepaid comes a little late, this truly is a case of better late than never. Below is a section from the press release that outlines some of the features of the product.

HP Prepaid Card Services add a comprehensive suite of modules across the entire life cycle of pay-before products, offering web-enabled services such as:

•An inventory management system tracks the complete life cycle of the card, providing clients with the assurance that they have card inventory ready for distribution;
•A self-service customer portal enables cardholders to easily enroll their cards securely with their issuing bank, view their transaction histories, add funds, change their PIN and report lost or stolen cards;
•A client brand able customer service portal allows simple and secure access to cardholder profiles and transactions to address customer inquiries.

While the HP platform doubtless has value to offer banks, questions remain regarding the actual preparedness for the full range of prepaid transactions, including things like reloads, bill payments, ACH transactions, text alerts, person-to-person payments, and others. Any prepaid platform needs to be flexible since many new technologies begin in the prepaid space before moving into attaching bank or credit accounts.

Read the full press release at: http://www.hp.com/hpinfo/newsroom/press/2011/110321a.html?mtxs=rss-corp-news

More information on the product can be found at: http://www8.hp.com/us/en/services/services-detail.html?compURI=tcm:245-823320

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