The general purpose reloadable prepaid card can provide access to the banking system for households that might otherwise remain in the cash economy. Today, a GPR card can do almost everything that most people rely upon for a traditional transaction accounts. The cards demonstrate their growth both in terms of breadth of customer adoption and depth of customer use. With every metric – active cards, gross purchase volume, gross load volume – it seems that more and more people are choosing prepaid. With each quarter, publicly-traded prepaid card companies report that a higher share of their cardholders are facilitating a direct deposit to their account.
But to truly represent the interests of consumers, a strong regulatory framework should be applied to this product. Here is a link to my comment on the CFPB's proposed rules for prepaid cards.