Credit union recognises benefits of prepaid cards
27 August 2010 11:52:30
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| A credit union is offering prepaid cards to its members. |
The move highlights the benefits that prepaid cards offer to the so-called 'unbanked', who do not have access to mainstream bank accounts or debit or credit cards.
Gerry Murphy, president of Newington Credit Union, which aims to help people in north Belfast out of debt and poverty, told the Belfast Telegraph: "A recent survey carried out by our credit union highlighted a desire for greater access to electronic services among our members.
"Our prepaid debit card can meet that demand, in offering our members the facility to purchase goods online, by phone and when travelling abroad."
Mr Murphy explained that prepaid cards can be loaded with money and cardholders can only spend the credit they have on their card, preventing them from getting into further debt.
The city's lord mayor, Pat Convery, told the newspaper that prepaid cards would enable unbanked people to make electronic payments, as well as individuals who are unable to get a credit card because of their poor credit history.
A recent report by global market research company MarketsandMarkets predicted that the number of banks offering prepaid cards would increase as providers recognise the benefits for unbanked consumers.
"The report identifies the traditional and novel banking and financial services that banks can offer these consumers, indicating prepaid cards as a potential financial vehicle for banks to penetrate the underbanked segment," the company said.
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