Private-label prepaid cards are losing their luster because of the recession, according to an Aite Group research note based on a survey of 21 card industry executives.
Eighty-two percent of those participating say current economic conditions are have a “somewhat to very adverse” impact on the sale of private-label cards, as expanding retailer bankruptcies stoke consumer fears they could be stuck holding worthless and unredeemable gift and other prepaid cards from defunct chain stores.
Private Prepaid Cards Take Lumps From Recession: Survey - 04..2009 - U.S. Banker Article