In recent years, branded prepaid cards have become an increasingly popular way for underserved populations to access financial services. Unlike traditional debit or credit cards, branded prepaid cards are not linked to a bank account. Instead, they are loaded with funds by the cardholder in advance. This makes them an attractive option for those who might not otherwise qualify for a traditional bank account. In addition, branded prepaid cards offer a number of other advantages. They can be used anywhere that accepts major credit cards, and they often come with online banking and bill-paying features. For many underserved populations, branded prepaid cards provide a safe and convenient way to access the financial services they need.
Steaming provider Viva Entertainment and financial service company Alterna announced plans for a branded prepaid card program targeting currently underserved U.S. immigrant populations. Further details are in Yahoo Finance:
“’Alterna recognizes the significance of enabling U.S. Hispanics who are unbanked or underbanked with financial tools and services they can trust,” said Joseph Seroussi, CEO of Alterna. “Together, we will continue to provide access to safe and secure financial products that serve the community and assist the nonprofits and organizations providing services to the community.’”
The service will seek to breakdown historic barriers for immigrant communities by providing additional services such as a bilingual mobile app, internetwork money transfers, and eventually cross-border services. The utilization of an entertainment brand provides a platform for clear messaging and customer acquisition.
“Viva Entertainment chief executive officer, Johnny Falcones, commented, ‘Viva is excited to offer this exclusive card to our members and customers. Many of our fans don’t have access to conventional bank accounts. This card will help them have financial autonomy by using features many of us take for granted, like paying with a card, transferring money and direct depositing paychecks. Not having to carry around a lot of cash is safer and more secure while not having to pay check cashing fees will save people a lot of money’.”
The Viva/Alterna offer highlights the continuation of utilizing prepaid to capture underserved markets and assist in the post-COVID transition to less frequent use of cash.
Overview by Jordan Hirschfield, Director, Prepaid Advisory Service at Mercator Advisory Group