Wal-Mart is launching a Visa-branded prepaid payment card issued by GE Money that can be used almost anywhere that Visa debit cards are accepted, including ATMs. It will be targeted to the roughly 28
million people--9% of the U.S. population-who do not have bank accounts.
Wal-Mart wouldn't confirm details about the card, which is featured on the Web site www.walmartmoneycard.com. A
few retailers, including Safeway and Walgreens, already offer prepaid Visa cards that can be used anywhere, but Wal-Mart--as the largest retailer in the USA--would be able to reach a far greater
number of consumers.
Prepaid cards have been around for years. But the most common type, gift cards, often can't be reloaded and sometimes can be used only at a specific retailer.
Purchases with a branded prepaid card--such as with a Visa logo--are expected to increase from $14 billion in 2005 to $38 billion this year, says consulting firm Aite Group.
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