A Prepaid Case Study: Ready Credit's General-Purpose & Transit-Fare Programs
25 Pages Posted: 17 Apr 2012 Last revised: 21 Feb 2014
Date Written: April 1, 2012
Abstract
Today, prepaid cards are used in dozens of payment applications. To examine the most recent developments, the Payment Cards Center of the Federal Reserve Bank of Philadelphia hosted a workshop on August 22, 2011. Leading the workshop was Tim Walsh, president and chief executive officer of Ready Credit Corporation, a firm that developed network-branded prepaid cards for use in transit-fare systems and also markets general-purpose, reloadable prepaid cards to consumers. Walsh discussed the unique opportunities and challenges associated with using prepaid cards for transit purposes. He described a model of customer acquisition that emphasizes direct advertising, high-quality call centers, and high rates of enrollment in direct deposit. Walsh compared and contrasted card usage patterns in his transit and general-purpose programs. He also described the importance of cost-effective messaging strategies that reduce program costs and teach customers how to reduce the fees they incur.
Keywords: Network-branded prepaid cards, general-purpose, reloadable prepaid cards, electronic payments, payment cards, transit-fare payments
JEL Classification: D14, D18, E42
Suggested Citation: Suggested Citation