There seems to be an affinity between prepaid cards and mobile payments. The percentage of people around the world who have cell phones is very high, even in desperately poor countries. The percentage of people around the world who don't have access to bank accounts, and thus have no debit cards (let alone credit cards), is pretty high. Therefore, the only electronic payment vehicle the world's poor have access to are prepaid cards, because they are not tied to bank accounts or lines of credit. And, since the worldwide unbanked do have cell phones, the wireless phone-prepaid card connection is made.
The same logic applies to the underbanked. Teenagers are representative of this group. Because of their age, they have limited access to bank accounts. So the teen market is a primary one for prepaid cards. And what teen doesn't have a cell phone?
Finally, smart phone payments are likely to be small-dollar purchases. You will probably opt to buy a sandwich at the deli using your phone, not when you make an expensive purchase, like buying a car. Prepaid cards are seen as ideal for those small-dollar purchases, as well, because the cards are really just the electronic substitute for cash. And most people don't buy cars with cash.
It's another reason why folks will slip that prepaid card into their mobile wallet when they take their date to the movies, not when the car needs new tires.
It's another reason why folks will slip that prepaid card into their mobile wallet when they take their date to the movies, not when the car needs new tires.
