Consumers are using general purpose reloadable (GPR) cards differently than they used to, and issuers need to take advantage of that. According to Mercator Advisory Group, “Open-loop prepaid cards are increasingly used by US consumers to supplement spending on their credit and debit cards. Prepaid cards deliver a budgeting tool and a shield that protects the cardholder’s other accounts.” This is corroborated by the FDIC which found that prepaid card usage by fully banked households increased from 5.3 percent in 2013 to 6.9 percent in 2015 and usage by underbanked households grew from 13.1 percent in 2013 to 15.5 percent in 2015.

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