The Canadian prepaid industry is fueling the transformation to a true digital banking and payments ecosystem. That theme will be at the heart of discussions at the 2022 CPPO Prepaid Symposium on June 1 at the Toronto Region Board of Trade.
To kick off that conversation, we sat down with DC Bank’s CEO and President Jeffrey Smith, where he shared his thoughts on how technology advancements are propelling prepaid’s growth, what offerings are attracting consumers, why prepaid cards are more flexible than ever, and what’s next for prepaid innovation. Catch his insights below.
What do you think is the biggest force propelling the prepaid market’s growth today?
Smith: The advancement of technology and digital transformation across industries is a primary factor in the growth of the prepaid market today.
What’s one product or service that prepaid is impacting today that isn’t getting enough attention in the payments industry?
Smith: More consumers are choosing card products from fintech’s offering a prepaid card product as an alternative or complimentary product to a traditional bank account. These types of offerings are growing in popularity.
What’s the biggest prepaid innovation use case you’re seeing today?
Smith: Technology has advanced to enable a program manager to integrate a prepaid card into a wallet with multiple clearing channels and features for cardholders, making prepaid cards more flexible in their use than ever before for end-users. We are fast moving towards tokenization and virtual cards linked to Apple/Samsung/Google Pay wallet.
How can the prepaid market best position itself to navigate today’s regulatory climate?
Smith: It is important to meet or exceed the regulatory requirements. Compliance must be core to operations in the prepaid market. It is essential to follow all prepaid card rules and rules for the associated products the Fintechs and Program Managers are selling.
What’s next for prepaid innovation over the next 1-5 years?
Smith: The continued advancement of technology, resulting in new innovative products from Program Manager’s and fintech’s that incorporate a prepaid card into their offering.