A Prepaid Case Study: Ready Credit's General-Purpose & Transit-Fare Programs

Today, prepaid cards are used in dozens of payment applications. To examine the most recent developments, the Payment Cards Center of the Federal Reserve Bank of Philadelphia hosted a workshop on August 22, 2011. Leading the workshop was Tim Walsh, president and chief executive officer of Ready Credit Corporation, a firm that developed network-branded prepaid cards for use in transit-fare systems and also markets general-purpose, reloadable prepaid cards to consumers. Walsh discussed the unique opportunities and challenges associated with using prepaid cards for transit purposes. He described a model of customer acquisition that emphasizes direct advertising, high-quality call centers, and high rates of enrollment in direct deposit. Walsh compared and contrasted card usage patterns in his transit and general-purpose programs. He also described the importance of cost-effective messaging strategies that reduce program costs and teach customers how to reduce the fees they incur.