Relationships change over time, and the same is true for the credit union-member relationship. Credit unions need to keep their finger on the pulse of changing needs and priorities to keep their long-term relationships fresh and build new relationships at the same time. Often, harnessing timeless tools in new ways can help credit unions address changing member needs with relative ease.

One powerful, though often underestimated, solution is the prepaid card. Its flexibility, security, and convenience can help address some of the most pressing concerns and priorities of your members.

Autonomy, including financial independence, is a rising priority for many consumers. It’s why 55% of people over 45 have started saving money by cooking more meals at home and the number of adults under 35 with side hustles has increased 22% (Global Banking and Finance).

Prepaid cards address the growing need and desire for self-sufficiency. When combined with flexible reload options, prepaid cards offer an easy way to independently budget daily expenses.

Prepaid cards promote budget awareness by:

Young adults, like college students, can also use prepaid cards to develop valuable budgeting skills for financial independence. When college students start the year off with funds loaded on a prepaid card, they and their parents can enjoy peace of mind knowing:

Overall, prepaid cards help members simplify the process of tracking their spending so they can stay within their budgets and reach those financial independence goals.  

Purchase channels today can include anything from traditional stores, to websites, apps, and social media. Three-quarters of consumers expect these to operate together in a unified, omnichannel performance (McKinsey Insights).

Tokenization has made prepaid cards a strong player within this environment. It enables cardholders to add prepaid cards to their mobile wallets, providing easy access to their funds wherever, and whenever, they shop. It’s a win-win that streamlines the payment process and encourages "top-of-wallet" status for your credit union's card.

The 2024 Internet Crime Report lists personal data breaches among the top three most prevalent cyber-crimes. Indeed, privacy and security are important considerations for members. Since prepaid cards are not directly linked to a member's account, they naturally offer a layer of protection. Other features, like zero liability policies and tokenization, add further safeguards.

While zero liability helps protect cardholders from unauthorized transactions, tokenization stops scammers from accessing card data. This extra security leads to reduced card replacements, easier authorization of online charges, and ultimately, greater member confidence and satisfaction.

Personalization and sustainability are also growing in popularity. AI is creating even higher expectations for personalized service while 78% of American consumers list a sustainable lifestyle as important (Global Banking & Finance Review). Virtual prepaid cards address both preferences. They avoid the need for plastic production and physical mail, making them eco-friendly. Meanwhile, immediate digital delivery and easy management on mobile apps offer cardholders a convenient, personalized experience. Members can also add them to mobile wallets for in-person shopping.

From supporting financial independence to providing a secure, convenient, and sustainable payment solution, prepaid cards play an essential role in keeping pace with members’ needs. This flexible card option can help members feel confident about their financial well-being, reinforcing their view of your credit union as a trusted financial partner.

To learn how Envisant can help your credit union develop a prepaid card program that meets modern financial needs, click here or contact the Envisant sales department at 1-800-942-7124.