Prepaid Cards Vs Cryptocurrency
The Future Of Prepaid Cards In The Face Of Cryptocurrency In The World.
Technology and internet of things are constantly changing man’s way of life, and the financial sector is no different, especially with the emergence of digital currency. For the longest time, people only transacted with hard cash until the introduction of the prepaid debit and credit cards that have reshaped international trade. Their use has been boosted further by the emergence of online stores and online payment methods.
Currently, prepaid card transactions account more than 50 percent trade settlements in most developed countries. There, therefore, have been distant but constant calls for the reevaluation of the prepaid card models in these countries. Some like the United States have therefore come up prepaid cards regulatory authorities to control these card operations and issuing companies. For instance, the US passed resolutions that allow credit advancement to debit card holders meant to take effect later in the year.
Today almost all banks in the world run several prepaid card systems such as the Visa and Master Cards that account for most of these card transactions. For instance, a recent mobile payment methods survey by Visa in Sweden showed that more than 77 percent of the country’s internet users frequently used a non-cash payment method, primarily the prepaid card method. But this not only opens up the country’s gaze towards prepaid cards regulation but also towards the cryptocurrency trade.
Emergence of cryptocurrency
While the prepaid cards are predominantly the most reliable form of online payment methods today, this niche is under threat of the rapidly growing digital currency such as Bitcoins. Its influence and rapid uptake by online marketers have triggered regulation thoughts from the most concerned government agencies. For instance, just recently the Ecuadorian Central Bank launched own digital currency to compete against the Bitcoin.
The Swedish central bank is also deliberating on the possibility of introducing a digital currency e-Krona, to be regulated by their central bank. The bank hasn’t, however, decided how the currency will be rolled out, either through banks or prepaid cards and neither has it come up with controls to kerb misuse and user safety. Nonetheless, such a move by these two countries coupled up by the looming speculation in different other nations serves as an indicator of the influence the digital currency has on the online payment markets. But does this threaten the future of prepaid cards?
Why isn't the digital Crypto-currency a threat to prepaid cards?
For starters, despite its continued use, digital currencies have a long way to go when it comes to gaining users trust. For instance, in the Swedish survey, only 9 percent of the active online payment users thought the government should introduce a digital currency. The fact that most digital currencies have been affiliated with criminal activities and exposure to the dark web were the centres of suspicion and apprehensiveness among the rest of the users.
The Swedish government thereby shelved the idea for two years as it comes up with proper regulations. It will, therefore, take time before the digital currency craze catches up on the prepaid card systems. You might also be surprised to see them adopt the prepaid cards virtual wallets.