MasterCard, in its efforts to service the growing number of unbanked and underbanked consumers, announced it will release a new prepaid MasterCard debit card. This new card is expected to debut in a matter of weeks.
February 1st
This new MasterCard is slated for release on February 1 and is designed to address the “rise in unemployment and economic strain across the globe”. It noted a larger number of people who are becoming unbankable and are relying heavily on prepaid cards. The O2USA prepaid MasterCard is designed to be a financial tool as well as a replacement for traditional bank accounts.
Comparable Financial Product
The new MasterCard is being compared to the WalMart MoneyCard in terms of its fee structures. The WalMart offer has always been one of the more affordable options in the prepaid sector. Val Kazia, CEO of the MasterCard O2 said in a presser,
We expect this action to expand the company, and will not only enable our existing and future clients to take advantage of a distinctly convenient payment method, but we anticipate that executing the opportunity to target such a large and growing part of the population, with financial options not commonly available…
The Numbers
With more than 90 million Americans who are considered underbanked, it’s easy to see why these particular products are becoming so sought after. From a global perspective, there are more than 2 billion who are considered un- or underbanked. This, of course, suggests improved fee structures as time moves forward.
So is a prepaid debit card offer right for you? If you’ve struggled in recent years with your financial well-being, it might be a viable solution, especially if you currently are one of the underbanked or unbankable consumers. While the actual fee structure hasn’t yet been announced, with assurances of it being comparable with WalMart’s offering, this new MasterCard prepaid offer just might be poised to become one of the major competitors.
One note of interest is the importance in understanding these products will not improve one’s credit scores. For those looking to repair past credit problems, a secured credit card offer is likely the better option. A prepaid debit card differs from a secured card in that with a prepaid dynamic, you’re using your own money while a secured offer requires you to match your credit limit in a savings account, but you’re not using the security deposit to cover your transactions.
As always, it’s important for consumers to carefully review any financial products, especially the terms and conditions associated with these offers to ensure they are making the best decisions when it comes to their money.
