Banking Review

The gift of prepaid

Prepaid cards in Australia remain a relatively niche product, but there are growth opportunities for business and government use

BY ELTON CANE

Globally, the market for prepaid cards is worth an estimated US$25 billion, with $US15 billion of that being for open loop cards. These allow recipients to use the card at most online and physical stores that accept payment via either the Visa or MasterCard credit card network,  although some work via debit networks such as Maestro.

The remainder of the prepaid market is predominantly closed loop gift cards, usable at one of a network of retailers.

ANZ was the first bank in Australia to get involved with prepaid cards, and says it has issued more than one million Visa prepaid cards and Visa travel cards since 2006.

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