BillMyParents’ recently re-vamped management believes that they are the only pre-paid card services company solely focused on the special needs of teen payment solutions and their parents. This focus has the potential to be one of the fastest growing segments of the pre-paid card industry. The pre-paid card industry is a $300 billion industry, and is expected to grow to around $400 billion in 2013.
Todd Ablowitz, president of Double Diamond Group, LLC, a payments industry consultancy based in Colorado thinks BillMyParents must overcome a couple of key stumbling blocks in order to succeed.
“Despite recent regulatory changes affecting prepaid cards, the market is experiencing impressive growth — particularly for open-loop prepaid cards, like BillMyParents, that can be used almost anywhere that accepts credit or debit,” explains Ablowitz. “A lot of this growth is being driven by government and businesses that are using prepaid cards to load benefits, payroll and promotions. However, growth is happening in other prepaid sectors as well.
Reuters, May 15, 2012
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