Prepaid MasterCard®s are the newest revolution in stored value cards. The Federal Reserve estimates 26 million households do not have bank accounts. In addition, 40 million individuals either do not have a savings account or access to credit or debit cards. These unbanked individuals need a cost effective alternative.

The number of un-banked individuals in the United States is estimated to be nearly 70 million. But that does not mean they do not have money. In fact, they generate a combined annual income of more than $300 billion, which is one reason why turning unbanked individuals into customers is a growing industry.

Target Markets
According to The Federal Reserve Board, they estimate the number of wage earning adults in the U.S. with no checking account (the “unbanked”) to be over 35 million.  Add to that 31 million teenagers, 14 million college students, and 20 million young adults between the ages of 18 and 25 that are not in college and there is a potential market of over 100 million people.

• Teens- Parents control spending by preloading cards with set amounts.
• Young Adults & College Students- Gives them freedom and flexibility without opening a bank account away from home.
• Unbanked Adults- 35 million adults do not hold bank accounts but still hold significant purchasing power.  Over 7-10 million adults are on ChexSystems (the nationwide bank “blacklist”), and remain on this list for five years.
• Immigrants/Foreigners- This group represents over 15% of the US population and estimates indicate only half of this group has a bank account.