Innovating Payments in the Digital World: Creative Uses of Prepaid

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31 October 2016
Zilvinas Bareisis


Celent has released a new report titled Innovating Payments in the Digital World: Creative Uses of Prepaid. The report was written by Zilvinas Bareisis, a senior analyst with Celent's Banking practice.

What do companies like Affirm, Kabbage, Oxfam, and Payoneer have in common? They all use prepaid accounts to power their diverse businesses. This report analyses the selected case studies of creative uses of prepaid and technology platforms behind them.

The prepaid market is multidimensional and needs careful definition if we are to conduct meaningful analysis. While stand-alone prepaid products play an important role in many markets today, prepaid accounts can also be used as part of a more complex value proposition. Platforms supporting payments in the digital world are open and modular, enabling clients to create their own use cases, support entitlements rather than account balances, and act as an “issuing gateway” to different companies. The opportunity for financial institutions is twofold.

  • Partnering with the new digital economy firms that want to incorporate payments into the overall experience they are creating for their customers.
  • Exploring opportunities how they can take a leaf out of these new firms’ books and develop new financial services and commerce experiences for their customers.

“We observe innovative companies using prepaid accounts in creative ways to enhance their business models," says Bareisis. “In some instances, the need for prepaid is not obvious at all.”

“Many financial institutions feel constrained by their legacy processing systems. In some cases that is valid, yet the good news is that they now have real alternatives. Increasingly, financial institutions will be constrained not by technology but only by their imagination,” he adds.

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Insight details

Corporate Banking, Retail Banking
Subscription(s) required to access this Insight:
Banking, >>Retail & Business Banking, >>Corporate Banking
Insight Format
Geographic Focus
Asia-Pacific, EMEA, LATAM, North America