Debit and Prepaid Cards: Are There Any Remaining Differences?

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Mercator Advisory Group releases new research comparing general purpose reloadable prepaid cards with debit cards and analyzing the subtle product differences.

One of the 8 exhibits included in this research report

Initially prepaid product providers were developing solutions to offer users a bankcard-like product. Now financial institutions are seeing inspiration in GPR card attributes.

General purpose reloadable (GPR) prepaid cards and entry-level checking accounts have both evolved to a point where product features and functionality of the two are nearly indistinguishable between the two. A new research report from Mercator Advisory Group titled, The Blurred Lines Between Debit and Prepaid Cards considers the differences between the two products and why providers and users might favor one over the other.

“At first glance, prepaid and debit appear so similar that one could conclude that the payments industry took two separate paths to end up with the same product. Initially prepaid product providers were developing solutions to offer users a bankcard-like product. Now financial institutions are seeing inspiration in GPR card attributes, comments Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group and co-author of the report.

Highlights of the research report include:

  • A comparison of some of the regulatory differences between debit and GPR cards.
  • Market sizing for prepaid and debit, including a look at the decline in the unbanked population in the U.S.
  • Review of the features and functionality of leading GPR cards and entry level checking accounts from five U.S. banks.
  • The role that GPR cards have and continue to play in banking and payments innovation.

This research report has 16 pages and 8 exhibits.

Companies mentioned in this report include: Ace Cash Express, American Express, Bancorp Bank, Bank of America, Chase Bank, Citi Bank, Green Dot, InComm, Mastercard, Meta Bank, Netspend, PayPal, Square, U.S. Bank, Visa, Walmart, and Wells Fargo.    

Members of Mercator Advisory Group’s Debit and Alternative Products Advisory Service and Merchant Services have access to these reports as well as the upcoming research for the year ahead, presentations, analyst access, and other membership benefits.

For more information and media inquiries, please call Mercator Advisory Group's main line: 1-781-419-1700, send email to info@mercatoradvisorygroup.com.

For free industry news, opinions, research, company information and more visit us at http://www.PaymentsJournal.com.

Follow us on Twitter @ http://twitter.com/MercatorAdvisor.

About Mercator Advisory Group
Mercator Advisory Group is the leading independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world's largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors. Mercator Advisory Group is also the publisher of the online payments and banking news and information portal PaymentsJournal.com.

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Karen Yetter
@MercatorAdvisor
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