The global pandemic has made people wonder how to build and maintain connections with each other. For many around the world, social distancing has helped in creating deeper connections, as it offered them room for better reflection. Notably, the payment industry has helped in creating these meaningful connections in different innovative ways.
The year 2020 has compelled many around the world to realize the growing importance of community. Lack of social gatherings and the devastating impact of the global pandemic inspired millions around the world to support the most fragile and vulnerable groups, and payments have been a crucial mechanism in achieving this, with prepaid payments speeding the relief for those who need it the most.
According to PayNXT360, more than 40% of people have used prepaid cards ever since the coronavirus outbreak. Moreover, consumers globally have adopted digital payments to shop online or avoid using cash in the wake of coronavirus disease.
The global payment industry has the opportunity to build on this momentum. For instance, digital payment solutions such as prepaid cards or digital gift cards can help create meaningful relationships between consumers and brands while supporting social distancing norms. Prepaid card innovations that emerged during the coronavirus outbreak are expected to persist long after the pandemic. Therefore, it will not be enough for digital wallet providers to store debit card payment details. They will have to transition to support all forms of buying experiences.
Prepaid card providers are partnering with banks to enable open banking payments for consumers. The open banking platform is expected to increase the appeal of the prepaid card while allowing companies to meet the ever-changing demands of existing customers and attract new consumers. For instance,
In December 2020, two leading MasterCard prepaid card providers, K Wearables and Their Perfect Gift partnered with Nuapay. This strategic partnership with Nuapay will allow both K Wearables and Their Perfect Gift to reduce processing costs. Notably, the partnership has also simplified the gift card buying process for consumers. For instance, under the partnership, the open banking payment system of Nuapay will be integrated into Their Perfect Gift online checkout, allowing consumers to purchase the gift card of their choosing without a credit or debit card.
Similarly, for K Wearables, the partnership will allow customers to top up their K Wearables prepaid card using the open banking payments system offered by Nuapay.