Payrnd

Wishing you a lovely Christmas season and a very Happy New Year!

Yours, PayRND Team 🎊

🟩 Prepaid Cards Can Play Meaningful Role in Combating Poverty

“Prepaid cards have seemingly endless use cases, serving as useful conveyors of gifts, rewards, and government benefits. During the pandemic, prepaid cards have also supported important charitable initiatives aimed at supporting those facing significant economic hardship. One such initiative has been launched by GiveCard, a Boston-based fintech nonprofit that distributes Visa prepaid cards to housing-insecure individuals throughout the U.S. The organization loads an average of $250 per month for three months onto each card, and recipients have indicated that this financial aid provides them with meaningful assistance.

In an increasingly cashless society, prepaid cards for housing-insecure people can play a critical role in achieving financial stability. As this Boston Globe article notes, “Often, the simplest barrier to helping someone surviving without shelter isn’t any lack of willingness from passersby, but the absence of physical bills in their wallets.” GiveCard and organizations like it are utilizing prepaid cards in support of their important work.” - paymentsjournal.com

🟩 Women Spend Less with Buy Now Pay Later and Repay Sooner

“It is often claimed that women are at greater risk from getting into debt with this growing way to pay. According to new data, however, women spend less, are more likely to make early payments and less likely to fall into default than their male counterparts.

On average women spend £76 per order, about a quarter less than men (£98). When it comes to early repayments 23% of women make their payments more than 9 days early, compared with 19% of men. Klarna Pay in 30 gives consumers 30 days to pay for a purchase, and Pay in 3 allows consumers to pay in 3 instalments spread over 60 days. On average, it takes just 38 days for consumers to completely repay purchases across both these products, reflecting the short-term nature of these products and the fact that many consumers make early payments.

Default rates across all consumers remain much lower than the credit card industry and the gender split tells a similar story of responsible use. The default rate for women is now
well below 0.5% and is almost half that of men.” - thefintechtimes.com