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Why Financial Institutions are Banking on the Prepaid Card Market
[November 07, 2019]

Why Financial Institutions are Banking on the Prepaid Card Market


FN Media Group Presents Microsmallcap.com Market Commentary

NEW YORK, Nov. 7, 2019 /PRNewswire/ -- Digital wallets and prepaid cards are quickly taking over traditional banking as we know it. Gone are the days when consumers had to use cash or their credit card to make bill payments, order food and do their shopping. The rise of payment platforms like Square Inc. (NYSE:SQ)'s Cash App and PayPal Holdings (NASDAQ:PYPL)'s Venmo have made it possible to conduct virtually all transactions on your smartphone. Interestingly, one market that hasn't fully embraced the mobile payments movement is the US, despite widespread smartphone use. The adoption rate for mobile payment apps is under 10% in the US, mainly due to a lack of incentive to switch. Instead, many Americans are opting for prepaid cards to make payments and purchases. In fact, the US prepaid card market is on track to reach a whopping $877 billion USD by next year, fueled by an increasing desire for convenience, security and a growing unbanked and underbanked population. It makes sense why companies like Green Dot (NYSE:GDOT), Synchrony Financial (NYSE:SYF), and LiteLink Technologies Inc. (OTCPK:LLNKF) (CSE:LLT) have created solutions for this market.

Green Dot (GDOT) offers reloadable prepaid Mastercard and Visa cards that are sold at big box retailers like CVS and Walmart, while Synchrony Financial (SYF) is mainly focused on store credit cards for both specialty stores and major retailers. LiteLink Technologies Inc. (OTC:LLNKF) (CSE:LLT)'s uBUCK Pay App offers consumers a digital wallet and a prepaid Visa to send and receive funds, make payments, withdraw cash at ATMs around the world and earn rewards as they go. But what really sets LiteLink Technologies Inc. (LLNKF-LLT) apart from the competition is its connection to the traditional banking world.

LiteLink Technologies Inc. (LLNKF-LLT)'s uBUCK Technologies SEZC joined forces with Deltec Bank & Trust, a long-standing independent financial services group located in The Bahamas. This strategic commercial relationship with Deltec Bank & Trust will not only allow LiteLink to accelerate the implementation of its fast, commission-free and highly secure alternative to traditional payments but will also open up uBUCK to a large network of financial institutions across the globe.

The partnership between LiteLink Technologies Inc. (OTC:LLNKF) (CSE:LLT) and Deltec Bank will include providing prepaid debit cards to Deltec's existing bank and wealth management clients, marketing the card program to regional private bank networks in the Caribbean, South America, Asia and Europe, and creating dedicated white label card programs for its existing digital asset exchange clients.

The Rise Of The Prepaid Card

Prepaid debit cards offer the unbanked and underbanked the opportunity to transfer money, pay bills online, purchase airline and concert tickets and have the same ATM access as their banked counterparts. The fact is, 17 million Americans don't have traditional chequing accounts and 51 million people in the US are underbanked, meaning they use alternative financial services to supplement their bank account. Some of the reasons for this growing demographic include being blacklisted by major banks, being a young consumer and being fed up with fees.

Synchrony Financial (NYSE:SYF) is addressing the struggles of the unbanked community by teaming up with Amazon to launc a credit card for those with no credit or bad credit. The Amazon Credit Builder allows users to build up their credit through a secured, prepaid credit card that can be used to make purchases on Amazon.com, Audible and select Pay with Amazon merchants. However, this card is fairly limited in its abilities to do much else, including making bill payments and sending transfers and is only available to US residents.



PayPal (NASDAQ:PYPL) also offers prepaid cards to its members which can be used the same as any regular credit or debit card. PayPal offers these prepaid gift cards with the Visa, American Express, Mastercard or Discover logo on them, making it simple for consumers to use them virtually anywhere in the US.

Unlike its competitors, LiteLink Technologies Inc. (LLNKF-LLT) has taken its services a step further by offering the global underbanked population the same opportunities as those with good credit. uBUCK's digital wallet and prepaid cards will allow the unbanked to shop anywhere that accepts debit, withdraw cash from ATMs, make bill payments, and send funds without paying transfer fees, all while earning rewards.


Its partnership with Deltec Bank & Trust, expands LiteLink Technologies Inc. (OTC:LLNKF) (CSE:LLT) reach beyond North America to service the global unbanked, which accounts for roughly 1.7 billion adults worldwide. Not only will Deltec be providing uBUCK prepaid credit cards to its existing bank and wealth management clients, but it will also be marketing the card program to regional private bank networks in the Caribbean, South America, Asia and Europe.

Financial Institutes Are Embracing Prepaid Cards

When it comes to these alternative payment methods, many of the big banks around the world are adopting the "if you can't beat em, join em" mentality and creating their own prepaid cards to gain a piece of this lucrative market. In fact, most major banks now offer prepaid credit and debit cards. The problem is, many of these cards come with hefty fees to activate, load and withdraw money. What's more, many of them also include a monthly fee that ranges from $0.99 to $19.95.

This is another area where LiteLink Technologies Inc. (LLNKF-LLT) stands out in the prepaid card world. Compared to the competition, uBUCK prepaid cards are available for lower fees and don't include a monthly charge.

Again, the company's business model focuses on the unbanked and underbanked, many of which had shied away from banks due to hefty fees.

Whether consumers stick with payment platforms like Square Inc. (NYSE:SQ)  and PayPal Holdings (NASDAQ:PYPL) or opt for Green Dot's (GDOT) reloadable prepaid, Synchrony Financial's (SYF) store credit cards, or LiteLink Technologies Inc. (LLNKF-LLT) digital wallet and a prepaid Visa, it is clear that digital payment platforms are here to stay.

For a free research report on LiteLink Technologies Inc. (CSE:LLT) (OTC:LLNKF), visit microsmallcap.com

Disclaimer:  Microsmallcap.com (MSC) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with MSC or any company mentioned herein. The commentary, views and opinions expressed in this release by MSC are solely those of MSC and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable MSC and FNM for any investment decisions by their readers or subscribers. MSC and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author (MSC), and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author (MSC) has not independently verified or otherwise investigated all such information. None of the Author, MSC, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer's filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer's securities, including, but not limited to, the complete loss of your investment. FNM was not compensated by any public company mentioned herein to disseminate this press release but was compensated twenty five hundred dollars by MSC, a non-affiliated third party to distribute this release on behalf of LiteLink Technologies Inc.

FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and MSC and FNM undertake no obligation to update such statements.

Media Contact:
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+1(561)325-8757

 

 


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