The prepaid card market continues to grow, and consumers are purchasing cards more often at "prepaid malls" inside convenience stores, according to Convenience Store Decisions.
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Editor's Insight: The evolution of prepaid cards portends significant opportunity for the vending industry.
Vending operators have operated "closed loop" prepaid cards in large vending accounts for many years. The new report from the Mercator Advisory Group notes that both "closed loop" and "open loop" prepaid cards are becoming more widely used by consumers. The report notes that convenience stores in particular are increasing their sales of these cards.
The report notes the rise of what's known as "multi-merchant" prepaid cards that allow consumers to use the card for various retailers.
Vending operators will find it worthwhile to carry these cards in their machines.
As cashless readers become more prevalent in vending machines, vending operators will also have an opportunity to participate in the promotions that consumer product manufacturers offer with prepaid cards. 04-22-11 by Elliot Maras