The Application of Prepaid Cash Card for Consumer
When we were young, we always admire how our parents swipe their credit card whenever we went out to shop for toys. The way we perceived credit card is like a wonderful magical card because it can fulfill all needs and wants without giving out a single dollar. That was when we were young and naive.
As time goes by, we knew credit card is not that wonderful and superior anymore as it is a LIABILITY. The moment when we swipe, we feel the excitement, our dreams fulfilled. But when the bill statement arrives, we are in HUGE trouble. That is when Prepaid Cash Card or Debit Card became popular.
As time goes by, we knew credit card is not that wonderful and superior anymore as it is a LIABILITY. The moment when we swipe, we feel the excitement, our dreams fulfilled. But when the bill statement arrives, we are in HUGE trouble. That is when Prepaid Cash Card or Debit Card became popular.
The reason why these Prepaid Cash Cards or Debit Card became popular is because the consumers can easily control their spending desires as they know how much they spend is actually how much they owned in the card. Hence, lesser people applies for Credit Card and the desire for Debit Card or Prepaid Cash Card has increased.
So in fact, what is this Prepaid Cash Card?
-It is the combination of a credit card and a debit card which allows the cardholders to load money onto it and then use it at anywhere a debit card is accepted. Because the money is loaded onto the card in advance, there is no credit risk for the card suppliers, unlike with traditional credit cards.
The Advantages of using Prepaid Cash Card:
a)Availability - Can be used at anywhere as long as the debit card or prepaid card is accepted.
b) Control - they are an ideal way to budget for yourself or help to manage your spending.
c)No debt risk - with a prepaid card there is no chance of spending
too much as you are limited to the amount you
put/have on your card.
In Malaysia, the most popular Prepaid Cash Card is definitely Touch 'n' Go. Mostly people purchased it is because of convenience purpose as it can avoid long queue at the Plaza Toll as well as queue at the railway stations and etc. But Touch 'n' Go card still has its boundaries as it cannot 100% perform like a credi card where consumers can use it to purchase groceries at the supermarket or paying the petrol bill at the petrol kiosk. Hence, the debit card has been introduced.
There are many alternatives for debit cards such as PublicBank Debit Card, MayBank Debit Card and etc. But in my point of view, i think the most common debit card for now will be MayBank debit card. This debit card is actually our ATM card that can performs just like the normal credit card and can be used at most of the shops in Malaysia.
In fact, there are many Prepaid Cash Cards out there in the market. But to be frank, in Malaysia, Prepaid Cash Card's trend just started. Compared to other countries such as United State, United Kingdom and etc, their Prepaid Cash Cards' varieties are even wider than us as Prepaid Cash Card is widely use in their countries.
In conclusion, the application of prepaid cash card so far can be consider healthier than credit cards. But in my point of view, the best of all is still CASH!
