Digitalization has led to several inventions. Financial transactions have become mostly cashless, and it has been both a boon and a bane for people. The usage of Prepaid Cards has been widely popular worldwide for all transactions and has been a constant topic of discussion for its pros and cons. It is easy to procure cards online, but we also have alternate Digital prepaid solutions. The discussion of the prepaid card being an inadequate solution for digital payment inclusion arises because of the constant invention in the digital world. Let us discuss, analyze and understand more about prepaid cards. What are prepaid cards? A prepaid card is a card or a medium used instead of cash. You need to buy a card and load money into it. The card can be used to spend up to the amount for which it is purchased. Prepaid cards are available in many stores and can also be purchased online. Why are prepaid cards getting popular? What is the usage of prepaid cards? How do prepaid cards work? Prepaid cards work almost similarly to debit cards, except you need not create and link a bank account to get a prepaid card. Below is its functionality What kind of fees do prepaid cards charge? You might have to pay fees to: What are the disadvantages of a prepaid card? How is a prepaid card different from a credit card? # Prepaid card Credit card 1 You can buy one card from anywhere (Store or online) with less protection involved There is a procedure to apply, authenticate and issue and security involved 2 Hidden charges involved A minimal amount is spent on procurement 3 No interest involved Interest can be earned 4 Does not contribute to your credit history It helps you to have a good credit score What is an alternative to a prepaid card? Lack of security and protection can be a major concern for normally prepaid cardholders. Cashless transactions need the utmost security, and proper security layer protection like 3D secure protocol can encrypt your card in the best way possible. We have many service providers providing more efficient and Tokenization enabled 3D secured cloud-supported cards that are the best alternative for a prepaid card. Conclusion Understanding the terms and conditions involved is essential before buying any money transaction card. Many companies are offering mind-blowing digital prepaid solutions to provide a customer-friendly payment experience that is more trustworthy, customized, and secure than prepaid cards. Due to its lack of long-term vision and benefits, Prepaid Cards are an Inadequate Solution for Digital Payments Inclusion.

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