How Prepaid Card Programs Are Helping Curb The Looming Coin Shortage in the US
The COVID-19 pandemic has dramatically transformed virtually every area of human economic activity. Currency is no exception. Amongst the shortages spurred by COVID is a shortage of coins in the United States. Since individuals are shifting towards more sanitary cashless forms of payments and staying at home more, they are no longer spending coins, meaning they have effectively been taken out of circulation. This shortage is enabling payment providers to be presented with a unique opportunity.
A recent article posted by PYMNTS.com, “The Federal Reserve is experiencing a significant coin shortage that is impacting our store operations and ability to provide change,” discusses how retailers have opted to provide change on payment cards rather than providing physical payments.
In addition to the logistical necessity of prepaid (there simply isn’t enough physical cash in circulation to go around), there are also public health benefits to such an approach. Each time a coin changes hands increases the probability that the coin will pass into the hands of a COVID-19 carrier. It follows, therefore, that opting for a prepaid card to distribute change is a more hygienic alternative for payments going into the future.
Prepaid cards also let businesses employ loyalty programs and free marketing of unprecedented depth. Businesses can provide the change on a custom branded prepaid card for customers to use in-store. Alternatively, you can also keep your customers happy by offering them the capability to use the card at millions of locations wherever Visa® is accepted, and advertise with your logo in the process. Customized cards keep your brand top of mind whenever the card is used and offer built-in advertising with every swipe.
Card programs allow retailers to gain useful insights into their customers. Card activation can be set up so the retailer can receive valuable KYC information (Know Your Customer). Retailers can also opt for a positive spin and provide shoppers with the option to have their change rounded up if the customer so wishes and donated back to charity.
Card programs let retailers find opportunities instead of doing damage control- set up your program today!
For more information please visit www.dcrstrategies.com
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