The application of pre-paid cash card for consumers

What is prepaid cash card?

A prepaid cash card is similar to a debit card. The major difference between prepaid cash cards and debit cards is that prepaid cash cards are usually anonymous while debit cards are usually issued in the name of individual account holders. Prepaid cash card is a plastic card encoded with monetary value on a magnetic stripe. It is an effective replacement for cash and has many applications for low-value retail purchases.

The most popular prepaid cash card in some countries:

In Malaysia,

Touch ‘n Go is used by Malaysia toll expressway and highway operators as the sole electronic payment system (EPS). The card is embedded with Philips’ MIFARE microchip technology. Touch ‘n Go card is not only applicable for toll fare but also parking services, public transport, theme park and cashless payment at retail outlets. The card can be reloaded at toll plazas, train stations, Automated Teller Machines, Cash deposit Machines, Petrol kiosks and at authorized third party outlets.

(Click here for information about where to use TnG)

In Singapore,

EZ-Link Card is a contactless smartcard based on Sony’s FeliCa smartcard technogy. It is used for payments in Singapore especially for transportation. It was established in 2001 as a means for faster travel due to speedier boarding times in buses. As of 2007, there are over 10 million EZ-Link cards in circulation, with 4 million card-based transactions occurring daily. The card is commonly used for paying transportation fees in Mass Rapid Transit (MRT), Light Rail Transit (LRT) and public bus services. It is now increasingly being used in libraries and all sectors of retail from leisure to dining to shopping.

(Click here for information about where to use EZ-Link Card)

In Hong Kong,

Octopus Card is used to transfer electronic payments in online or offline systems in Hong Kong. The Octopus card can now be used to pay fares for all public transport in Hong Kong and to make purchases for consumer products at many stores in the city. It is accepted by more than 1,000 merchants by now. In addition, the security of the Octopus card system would be jeopardized should the access key be exposed.

(Click here for information about where to use Octopus Card)

The increasing issues of prepaid cash card in many countries indicate a apparent trend in holding prepaid cash cards. The growing needs are resulted from the numerous benefits of prepaid cash card. For the first, it is an ideal way for users to budget themselves and there is no chances of spending too much as users are limited to the amount they put on their cards. Prepaid cash card also enhances the speed of paying for low value but high frequency transactions. Apart from the speed, it is also very convenient because users no longer need to prepare for small change or wait in queue at the cash lane to complete the transaction.