In an era defined by convenience and flexibility, general-purpose prepaid cards have emerged as powerful financial tools, revolutionizing the way consumers manage their money. These versatile cards offer a dynamic alternative to traditional banking, allowing individuals to navigate a range of transactions with unprecedented ease and security.
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Data for today’s episode is provided by Javelin Strategy & Research’s Report: Prepaid Healthcare Options Expanding
Top 5 Sources Used to Receive a General-Purpose Prepaid Card in the Past 12 Months
- 55% – another source (examples include payroll cards, unemployment, EIP program, commissions)
- 36% – consumer rebate or incentive payment
- 24% – government programs (i.e. unemployment, SNAP, EIP, etc.)
- 16% – store credit/returns
- 16% – redeemed points or cash rewards
The prepaid healthcare payments market remains a robust and growing opportunity. Financial institutions, fintechs, and other players within the payments side of healthcare can benefit from rising use cases of existing and emerging products to spur an increased volume of transactions and higher spending totals. Costs of healthcare services continue to outpace inflation, which provides ample opportunity to grow revenues through participation in programs such as flexible spending accounts and health savings accounts.
Employers can also better serve their employees in a competitive environment by increasing benefits and incentives. These programs can be as simple as small-value incentive programs linked to employer-sponsored healthcare plans that reward individuals with gift cards or other financial rewards for good health outcomes. While all sides of the ecosystem must be aware of regulatory changes, the overall market continues to push for greater inclusion rather than restriction.