September 19, 2008
Use of prepaid cards increases in the UK
The Newcastle Building Society ( NBS ) has claimed that the use of prepaid cards has increased amongst those people who currently have individual voluntary arrangements ( IVA’s ). The firm predicted that the current rise in this type of card’s popularity will see prepaid card use rise by 10% by 2012. It was also estimated that this alternative to the credit card may see its numbers increase to nearly 10.9 million by 2009.
The NBS stated that prepaid cards are becoming increasingly popular in the UK because they are not tied to bank accounts and can offer protection for those who wish to carry out their financial transactions online or for those who are travelling abroad. The use of these cards can also assist Britons to deal with difficult financial situations and debt management.
Prepaid cards also appear to be particularly appealing to parents who want to offer their teenage children a limited spending option.