Many financial institutions previously launched a prepaid card program without much thought to overall strategies or services to keep consumers engaged. As a result, no surprise, most prepaid programs introduced this way were not overly successful. 

Many now realize that if they correctly launch the program by incorporating value-added features (such as a mobile app or white-label mobile platform), a financial institution can positively affect retention, especially among younger consumers. In fact, a prepaid program, combined with a mobile app, might even be more appealing than a traditional checking account to some millennials.

Research shows that prepaid customers today want newer technology—including online access, email alerts and smartphone apps—more than just the telephone to check their balances. 

* Source: “Banking on Prepaid,” Pew Charitable Trusts

Our own data shows that the most common features used by prepaid customers with a mobile app extend beyond checking balances. These popular features include card-to-card transfers for sending funds amongst cardholders and a locator function by zip code for free ATM withdrawals, convenient reload locations and instant discount coupons. 

Plus, we continue to expand value-added services offered through our prepaid mobile app. Coming soon, for example, is expedited photo bill payment and P2P money transfer functionality (like Venmo). 

Features like these won’t be found in vanilla apps, but they are the functions you will need to create stickiness with customers, who require a better mobile experience. 

Interested in learning how to improve retention with a white-label mobile platform for your current prepaid program? Download our sponsored Mercator paper, “More than Account Balances:  Making Mobile Apps Work for Your Prepaid Program.

Sue Brown is vice president of mobile innovations at Digiliti Money. She brings 20+ years of subject matter expertise in card programs, financial institution marketing and product development. At Digiliti Money, she is responsible for new product/service/feature research and vendor selection to support Digiliti Money’s Select Mobile™ Money prepaid card platform and customizable mobile app.