Are you a company with a lot of interest but little-to-no experience in prepaid cards? Many startups and established companies are moving quickly to deliver innovative payment solutions through the use of prepaid and virtual cards.
Whether you are starting a new business or augmenting an existing product, a prepaid card program is a significant investment (and opportunity) that comes with many considerations. We’ve prepared some questions you need to consider before you launch your own prepaid card program.
What is the problem you are trying to solve through your prepaid product?
In short, this is your business plan. Get a clear understanding of your customers’ pain points and create a solution built around solving this problem!
At Vasco Pay, we recognise that no two businesses are the same, so that’s why we uniquely tailor each card program to their business goals. Some companies launch prepaid cards to incentivise customers as part of their loyalty program, while others leverage prepaid cards to create innovative payment solutions that challenge traditional banks.
Which prepaid product will work best for your intended customers?
Consumers these days are spoilt with choices when it comes to payment options, with prepaid cards representing a slice of the pie. The unique factor about prepaid cards is that they are not linked to a bank account, unlike debit cards. Nor do they give you access to money in advance and charge you interest if you don’t pay your balance in time.
The challenge for businesses is to make sure your card is the one that customers want to reach for! The card type, features and benefits become very important as you embark on the initial design of your card program.
Do you want a plastic or virtual card? Will your card be reloadable or single load only? Do you want cardholders to be able to use the card online, overseas and withdraw cash from ATMs? Can it be used only at specific merchant(s), or anywhere? How will cardholders load funds and check their balance? What limits will you impose on the card balance and withdrawals?
As you can see, there are a lot of card features you need to consider from a customer, business and market perspective. As a Program Manager, we can help you work through these key decisions with our expertise in the prepaid card industry.
How will your program be profitable over time?
There are different revenue streams for prepaid card programs, with companies typically charging fees to cardholders. Other revenue streams may come from loyalty programs that use prepaid cards to incentivise spend. For some companies, the savings and efficiencies gained from the card program justifies the cost for the business.
Who will manage your program’s marketing, sales, customer service, tech support etc.?
Once you get past the core of designing the card, you will need to consider how the program will be brought to life and sustained through services such as marketing, sales, customer service and technical support.
With Vasco Pay, we work flexibly within your requirements whether you choose to keep these functions in-house or outsource them. As a Program Manager, we are able to provide you our white-glove services or recommend alternative solutions.
The big question is, how will you ensure that you launch a successful card program?
That’s the million dollar question! Every company will define the success of a program differently, but having the right partners in place will ensure that you are a step closer to success.
As Visa Prepaid Card Program Manager, we can design a bespoke solution for you that is quick to market and easy to implement. We are here to help you navigate through the complex process of launching prepaid cards, a journey that we have been through ourselves.