Marketing Prepaid Cards in “From Coins to Big Bucks” Report

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Introduction

The article ‘From Coins to Big Bucks’ reflects the tendency of using the marketing prepaid cards, which could be sketched back to the prepaid telephone ticket. Firstly, the article begins with a brief excursion to the history of the prepaid cards and how they were introduced into the United States. Earlier, before the cell mobiles were created, pay telephones were applied for exchanging information when persons were absent from the household. As a substitute for spending cash, the prepaid telephone ticket was designed in Europe in the second half of the twentieth century and was presented in America by the late 1980s. The prepaid card concept rapidly extended to contain explicit commercial cards (‘private-label prepaid cards’), or also known as ‘gift cards’ (Bennett, 2015, p. 1). At the beginning of the 1990s, the administration of the country started substituting paper-created food hallmarks with ‘electronic benefits transfer prepaid cards’. The said cards could be applied to extensive diversity of wholesalers. In the interior of several years, the prepaid phone card idea concept stirred an even more superior inkling: the prepaid card marketplace (Bennett, 2015).

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Review

Furthermore, the article explains the features of the general-purpose prepaid card. At the moment, there is an extensive amount of diverse kinds of prepaid cards, as well as reloadable ones. Moreover, in the latest time, deviations in customer expenditure customs have predominantly augmented the acceptance of the general-purpose reloadable type of cards, which is also referred to as GPR. The general-purpose reloadable card appears to be the firmest developing method of reimbursement that does not involve cash. The relevance of the GPR in today’s economic environment is depicted in the following statistics: the number of connections amplified at a yearly percentage of almost thirty-four percent in the period from 2009 to 2012. Moreover, a whole of three billion general-purpose reloadable prepaid card dealings was conducted in 2012; this number is almost two billion more dealings than three years before. A general-purpose reloadable prepaid card looks like a “debit or credit card, carries the logo of a major payment card network brand—American Express, Discover, MasterCard, Visa— and can be used as a debit card” (Bennett, 2015, p. 2). It could be applied in order to conduct acquisitions wherever the card trademark is recognized and to acquire currency at any ATM that attaches to the system of the general-purpose reloadable card.

Additionally, the article explains how and where the card could be obtained, what the features of a card are, and how the customers are able to use it. A general-purpose reloadable prepaid card can be acquired at a store or on the Internet and has no worth up to it is obtained and have some sum of cash on the account. The card is not connected to any account in the financial institution; moreover, every time an acquisition or money extraction is completed, the same sum of money is withdrawn from the card’s account. The card can be activated either online or by telephone. Only activated cards can be reloaded with additional funds. The article explains how the status of the general-purpose reloadable prepaid card is related to the despite charges, which sustained with its convention.

The general-purpose reloadable prepaid cards rapidly became extensively applied as imperative merchandise for lower-profits, underbanked, and consumers who do not have any bank. In some cases, prepaid cards have developed into inevitabilities for these customers. For instance, this product is currently a substitute for administration expenditures such as Social Security expenses, troupers and army welfares, redundancy aids, and salaries for national workers. Unbanked and underbanked receivers of these welfares could apply to the prepaid cards to grant for acquisitions and mundane incidentals such as debts.

Conclusion

In conclusion, the author suggests the innovative standpoint for the general-purpose reloadable prepaid cards and their relevance in today’s economic environment. The Phoenix exploration authorizes the development of the general-purpose reloadable prepaid marketplace into newer and higher-revenue populaces and classifies the Millennials as the main target faction for sustained progress of the segment (The Millennial count, 2010). With a projected amount of seventy-seven million people, the utter extent of this age group can hypothetically guarantee a sustained advance of the retail. Uniting the initial target retail assemblies that already have been mentioned above with the Millennials enhances a fresh viewpoint to the general-purpose reloadable card market: a superior board marketplace with more expenditure supremacy. This enlargement modifies the general-purpose reloadable prepaid card market considerably.

Prepaid cards were conceived as a resolution to a complication of substituting coin convention in payphones. This creation has been enhanced upon and has changed into enormously reasonable retail. “There are many brands: Green Dot, Bluebird, MoneyPak, and MoneyCard; a walk through almost any store (e.g., Wal-Mart, Walgreens, 7-Eleven, Family Dollar) provides just a snapshot of how the original phone card idea grew into a mega-market netting big bucks” (Bennett, 2015, p. 2). Customers encumbered nearly twenty-nine billion dollars on general-purpose reloadable prepaid cards during 2009, and the consignment price escalated to sixty-four and a half billion dollars by the end of 2012. As economic marketing of the general-purpose reloadable prepaid cards aims at newer and more prosperous customers with extensive purchasing influence, it is rational that the complete load price will hypothetically increase even more.

References

Bennett, J. (2015). From coins to big bucks: The evolution of general-purpose reloadable prepaid cards. St. Louis, Missouri: Federal Reserve Bank of St. Louis.

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IvyPanda. (2020, August 17). Marketing Prepaid Cards in "From Coins to Big Bucks". https://ivypanda.com/essays/marketing-prepaid-cards-in-from-coins-to-big-bucks/

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"Marketing Prepaid Cards in "From Coins to Big Bucks"." IvyPanda, 17 Aug. 2020, ivypanda.com/essays/marketing-prepaid-cards-in-from-coins-to-big-bucks/.

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IvyPanda. (2020) 'Marketing Prepaid Cards in "From Coins to Big Bucks"'. 17 August.

References

IvyPanda. 2020. "Marketing Prepaid Cards in "From Coins to Big Bucks"." August 17, 2020. https://ivypanda.com/essays/marketing-prepaid-cards-in-from-coins-to-big-bucks/.

1. IvyPanda. "Marketing Prepaid Cards in "From Coins to Big Bucks"." August 17, 2020. https://ivypanda.com/essays/marketing-prepaid-cards-in-from-coins-to-big-bucks/.


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IvyPanda. "Marketing Prepaid Cards in "From Coins to Big Bucks"." August 17, 2020. https://ivypanda.com/essays/marketing-prepaid-cards-in-from-coins-to-big-bucks/.

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