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Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: Government Issued Prepaid Cards: Efficient Cash Access and Distribution.
The Data Around Government Issued Prepaid Card Distribution:
- Government agencies that distribute funds on prepaid cards use the product for fast distribution to benefit unbanked or underbanked households.
- All indications are that these programs run efficiently, as evidenced by a very low cost percentage measured in basis points.
- $136.2 billion distributed on government issued prepaid cards generates only $152.69 in service fees and costs.
- SNAP is the dominant distribution channel for government prepaid cards, with $54.9 billion loaded onto prepaid cards in 2019.
- The program benefits 35.7 million Americans and 18 million households, with an average monthly benefit of $129.83 per person.
- Social security is the second largest government issued prepaid card, with $36 billion distributed in 2019.
- The third largest government prepaid issuance is unemployment, with $19 billion distributed on prepaid cards.
About Report
Prepaid cards played a significant role in distributing CARES Act funds to 3.6 million Americans, but the payment form extends deep into many government benefit programs.
Ten benefit programs carried $136.2 billion in prepaid loads during 2019, but only incurred $152.7 million in costs among all government distribution channels. For those in need, prepaid cards provide quick access to funds and a reliable, safe way to receive cash value.