Prepaid Card to Launch
Next week will see the launch of a 'pay as you go' Mastercard
16th September 2005
A partnership between Mastercard Europe and Advanced Payment Solutions (APS) will create a new prepaid 'credit' card which will be launched on 21st September.
The card will be able to be used in the same way as current credit or debit cards, but will first need to be 'charged' with funds in much the same way as a pay-as-you-go mobile phone.
The new spending card is aimed at the half of the UK population who do not have a standard credit card, whether through difficulties with credit ratings or a simple desire to avoid indebtedness. It will also be attractive to the 2 million British households that don't have a bank account, and therefore don't have a debit card such as Maestro.
This kind of card is already popular in the USA, where it is often known as a 'stored value' card.
Commenting on the launch, a spokesman for Mastercard Europe, Phil Davies, said:
"Fueling the growth of prepay cards is essential... ...to a truly cashless society"
Rich Wagner of APS commented:
"[the card] will be of particular value to people previously financially excluded and those with poor credit ratings"
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More on Prepaid Cards : New 'Pay As You Go' Card Launched (News, 22/05/2006), Prepaid Cards Issued to Children (News, 27/01/2006), Clydesdale to Launch Prepaid Mastercards (News, 20/01/2006), MBNA Launches Pre-paid Gift Visa Card (News, 30/06/2005) |
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