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vertical opportunities
snapshot:
Government-Administered Prepaid Cards
U.S. federal, state and local governments disbursed
more than $148 billion through prepaid cards in 2014, on payments ranging from benefits and social assistance, to tax refunds to employee wages. For government agencies, prepaid cards offer cost saving and efficiency, especially when disbursing funds to people without bank accounts. For this population, prepaid offers safety and security, access to funds at minimal cost and, perhaps most significantly, a path to financial dignity.
the breakdown
Funds disbursed through PrePaid Cards in 2014 by Program (in billions)
Prepaid has made inroads in nearly every sector of government payments,
but the extent of prepaid penetration varies by payment type. For instance, all payments made under the Supplemental Nutri- tional Assistance Program (SNAP) are required by law to be made via a closed- loop prepaid card. Simi- larly, all Social Security payments are required to be made electronically, but most recipients receive payments via direct deposit into a bank account. Those without an account may opt to receive payments
on a Direct Express prepaid card.
SNAP Social Security Unemployment ChildSupport Cash Assistance Other Veterans WIC Tax Refund Payroll
$69.6
$29.9 $22.8
$12.7 $9.1
$1.3 $0.9 $0.9
$0.4
$0.4
0 10 20 30 40 50 60 70 80
source: Board of Governors of the Federal Reserve System. “Report to the Congress on Government-Administered, General-Use Prepaid Cards” (2015).
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