Banking news
Pre-paid debit card market 'will grow'
4 June, 2007
A travel insurance specialist has suggested that the market for pre-paid debit cards looks set to expand because it can help to keep costs low
InsureandGo said that this type of plastic could become more and more popular with consumers as it provides greater security than credit cards and can be a better way of budgeting.
The comments come after the travel firm launched its own version of the card, which means that cardholders can access their money from ATMs or at the point of sale without having to convert currency at a poor or extortionate rate.
It also replaces the need for traveller's cheques - with holidaymakers crediting the card with the amount of money they will use on their trip, rather than carrying a credit card with large amounts of money available.
Perry Wilson, director of the firm, said that the cards could be the way forward saying: "These [Travel Cards] are great because once you've used it abroad and you're home, you can use it on the internet - it's got all your bank details on it, safe. There's not just one use for it, you can use it wherever you go.
"So this [market for] pre-paid debit cards will grow - it's exactly the same as a pay-as-you-go phone, it's a safe way of keeping your costs down whatever you do."
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