The UK’s passion for innovation means it is now seen as a global leader in the development of financial services that are powered by prepaid technology, according to data released by Prepaid International Forum (PIF).
PIF, the not-for-profit trade body representing the prepaid sector, reports that the percentage of UK adults using tech-based financial services has risen to 42% (up from 14% in 2015). The UK is at the forefront of this growing market in Europe, ahead of Spain (37%) and Germany (35%). The UK is third globally to only China (69%) and India (52%).
Fueling this growth in the UK is prepaid, which has become a driving force for the fintech companies who are rapidly transforming the way we pay and get paid. The prepaid sector in Europe is growing faster than anywhere else in the world (up 18% since 2014 compared to just 6% growth in the US) is now worth $131bn*.
Experts believe that the UK’s passion for innovation may help to offset the potential negative effects of a no-deal Brexit, should UK financial service providers lose its right of automatic access to EU markets.
Diane Brocklebank, spokesperson for PIF, says: “The UK is a globally significant player in the creation of prepaid-enabled financial services with consumers keen to adopt new and innovative services and a growing industry of experts with the knowledge needed to develop such products and bring them to market.
“In a global sector, the UK stands out as being a key market and one that should retain its prized status even if it loses its financial passporting rights as a result of a no-deal Brexit.”
The UK’s status in prepaid is significant as it is a sector that is growing much faster than other financial services. In Europe, the 18.6% growth in prepaid since 2014, compares to just 7.8% growth in consumer debit and 5.8% growth in consumer credit markets*.
Diane Brocklebank, continues: “Prepaid and Fintech are the areas where people looking to invest in financial service businesses are seeing the most potential. This is being driven by increased dissatisfaction with mainstream financial services and a desire for greater innovation and flexibility, particularly amongst consumers looking for lower costs and fees as well as smartphone accessible products.
“The UK’s status as a global player is therefore crucial to it continuing to be seen as a key market for such investment. To maintain this, it must continue to be a positive environment for innovation with a supportive regulatory environment and strong skills base.”
(Source: PIF)
You’ll have noticed over the past year, that every time you go to pay for something, contactless methods are saving you time. Kevin McAdam, Head of prepaid at Allpay Limited, tells us more about this evolving theme in the payments sector.
Society has developed a thirst for speed and ease of payment, originating with online payments and direct debits, followed by the birth of contactless. The use of contactless payment is on the increase, with recent research highlighting the technology’s prevalence over cheque payments. Equally, at allpay Limited we’ve seen an increased demand for contactless, with upwards of 90% of new orders requiring contactless functionality. Moreover, while not a mandatory requirement, many local authorities are seeking contactless in their tenders, most notable in the last 4-6 months. This proves that the market is shifting towards faster payments which require minimal input.
For tenants living in social housing who are elderly or infirm, minimising the room for error is key - especially if they lack access to, or an understanding of, certain technologies. Contactless eliminates the need to remember a PIN number, resulting in small payments being processed with minimal intervention and stress. Transactions are processed quickly, easily and with peace of mind.
As a result, prepaid card payments are evolving to facilitate contactless. Both prepaid and contactless cards enable easy, swift and secure transactions, but are not in competition. Rather, moving forwards, the two payment methods are integrating to optimise ease for the payee and the speed of transactions. Our future goal at allpay Limited is to issue debit free, re-loadable prepaid cards with all the security benefits, as well as contactless capabilities.
The next step towards further facilitating payments is providing access to universal credit via prepaid cards from the government. Universal credit is less restrictive as, instead of paying for one specific outlet, payees would have autonomy over how the money was spent. Of course the pre-set limit of £30 maximum would remain. Yet, this versatility is an appealing prospect for those reliant on prepaid cards, with contactless capability an additional bonus.
Access to universal credit via prepaid has already been tested by the Kent Council, with a largely positive response. The trial demonstrated that prepaid cards have the potential to promote financial inclusion and independence, helping people manage their money and debts and widening options for financial management. On this basis, the evaluation concluded that it would be feasible for the Department of Work and Pensions to carry out a more extensive trial of using prepaid cards to support vulnerable claimants. We pride ourselves on the convenience we offer our customers by providing a wide range of payment solutions. With this in mind, we aim to be at the forefront of all new developments in the prepaid sp
Prepaid Financial Services (PFS), a leading e-money institution that specialises in prepaid cards and alternative banking services, has announced the launch of a programme for international relief organisation, Samaritan’s Purse, to provide financial aid to refugees and migrants across Greece.
Samaritan’s Purse has been operating programmes in Greece for over a year, improving conditions in refugee sites and bringing hope and dignity to refugees and migrants by providing water and sanitation infrastructure, shelter, supporting community initiatives, aiding people in accessing asylum services, and distributing emergency food, hygiene kits, and critical relief items.
This new cash programme will allow Samaritan’s Purse to further provide for basic needs by giving refugees and migrants access to prepaid cash cards. Given the varying needs of a diverse population, cash programming allows refugees and migrants to purchase exactly what they need in the local markets in a dignified way that supports resilience.
PFS are acting as the issuer of cards. Samaritan’s Purse is distributing the prepaid cards to vulnerable refugees and migrants across Greece. Of all the methods available for distributing cash, multi-purpose grants in the form of prepaid cash cards are the most appropriate for the context. The prepaid cards provide a secure method of distributing funds as cards have unique PIN codes with ATM and Point of Sale (POS) capabilities.
Noel Moran, PFS CEO said: “As the migrant crisis in Europe continues, PFS is pleased to provide a solution that will help Samaritan’s Purse manage fund disbursements, while also supporting financial inclusion, and giving financial stability to refugees and asylum seekers.
“Although the scheme has rolled out very recently, we are confident that this new method of distributing funds will alleviate pressure on Samaritan’s Purse, letting them focus on continuing to improve conditions and support people in camps.”
Sally Morson, Cash Program Manager for Samaritan’s Purse said: “Until recently, our main support was provided through in-kind distributions. Now, we are moving towards a cash based response where the refugees and migrants will be given the freedom of choice which promotes dignity and resilience. The prepaid cash card is a good modality because it is a secure way within Greece to access what they need in the local markets given the varying needs of a diverse population.”
PFS has a wealth of experience in delivering prepaid solutions that provide financial support for end users of charities, Local Authorities, and National Governments across Europe, offering card programmes that work seamlessly across borders and allowing refugees and asylum seekers to use prepaid cards for financial inclusion.
(Source: Samaritan’s Purse & Prepaid Financial Services)
