The world of online shopping and online entertainment is on the rise – there is no doubt about that – the business is booming. This is also reflected in the rapidly growing number of people who are curious about the wide-ranging options the internet is offering. People want communication and information, everywhere and at any time. From gaming and social media, to music, film and more – you name it, it’s there.
Equally wide-ranging is the market for internet payment solutions. Customers that shop online are faced with (and sometimes overwhelmed by) dozens of different online payment methods. Ultimately the choice of the payment method is the customer’s choice.
However, there are two aspects that one should consider when choosing the payment method to pay over the internet: cost control and security.
Particularly when shopping on the internet, it is important not to lose track of your spending. It is also equally important to consider privacy issues. Therefore it goes without saying that, apart from opting for an easy-to-use solution, it is also very important to make sure that the selected option offers a good track of what you are spending while ensuring that you are doing so through a secure solution.
About 60 per cent of the population in European countries do not have a credit card. On the other hand those who have a credit card are not always as disciplined as they wish to be when it comes to buying online. I am sure that the minds behind prepaid payment systems definitely took these two factors into consideration when analysing their profitability.
Nonetheless, apart from the pure commercial aspect as seen by the industry in this business, a prepaid payment system offers a number of advantages to the user.
First of all, prepaid schemes set an expenses limit for the user. With prepaid products consumers cannot spend more than the amount they have specified. This is extremely helpful. As Jennifer Tescher, chief executive of the Centre for Financial Services Innovation rightly points out: “If you know what questions to ask and you spend some time shopping, prepaid cards can be a positive tool for managing money and can even be a substitute for a traditional checking account.”
This contrasts starkly with the possibilities offered by reloadable prepaid cards. Reloadable prepaid cards can be found handy by over-spenders and people who steer clear of banks. However, they can cost one a fortune if one is not careful.
Secondly, in addition to optimal cost control, there is also the possibility of using fee-based online services without having the need to disclose any personal, bank or credit card details. Out there, cyber criminals are constantly devising new tactics aimed at stealing confidential user data. Prepaid solutions can be the solution to this problem. Prepaid solutions can help you to prevent being a victim of cybercrime.
Thirdly, there is also the added advantage that in the case of loss, the maximum amount that the user will lose will tally with the amount that one spent upon purchase of the prepaid product or the amount of credit that one has not yet used.
These reasons, along with a number of others, explain why prepaid products are gaining ground across a wide-ranging spectrum. They have gained ground with those who have bad credit. They have gained ground with those who have spending problems.
They have also gained ground with those who want to manage or supervise the spending of those under their care – parents who wish to control their children’s spending.
The world wide web offers a plethora of products for sale – prepaid solutions help you shop online with peace of mind, mainly, full control of your money, as well as anonymity and therefore inaccessible to malicious scammers.
Marthese Portelli is business development manager at Alert Group.