Editor’s Note: This blog was originally published in July 2017 and was amended to include more up-to-date and accurate information.
What Is a Prepaid Card?
A prepaid card is a form of payment that the consumer can load up with a certain amount of money before using it.
Prepaid cards come in several forms:
- ID cards or key fobs for employees at their place of work, for students at their place of study, or for residents at their dwelling-place
- Loyalty cards that are distributed (for free or for a small fee) to consumers
- Digital prepaid cards on different payment apps
Prepaid cards are especially beneficial in closed-loop environments. See why below.
The Advantages of Prepaid Cards in Closed-Loop Environments
Prepaid cards offer opportunities for retailers to increase their revenue, especially in closed-loop environments such as offices and other workplaces, universities, hospitals, and more. These cards also help improve employee welfare, for example. Because these places have a consistent customer base, it is easy to offer prepaid employee, student or resident cards that are partially loaded by the employer, university, or the building managers.
People are more likely to spend more if they are given some “starting money”. Say, if employees receive $50 a month that they can use on vending machines at their offices, they are likely to use those $50 and then some, because they’ll be used to making purchases daily.
If employers or facility managers aren’t able to offer a fixed amount every month, they can also offer subsidized pricing. For example, people who receive company, university, or residential prepaid cards, can receive products at a discounted price, whereas any visitors will pay for the full price of the product if they make a purchase with their credit card. These subsidies and special discounts encourage purchases from the operators’ largest potential customer base.
And if unattended and micro market operators choose to add loyalty programs to the mix, they’ll grow their revenue even more. Operators using loyalty cards strengthen brand awareness, enhance consumer engagement, and promote repeat purchases. By providing discounts to users with loyalty cards, operators encourage return visits which results in increased sales.
Above, you can see a picture of a TVend vending machine in the UK that uses Monyx Wallet in a closed-loop office environment
Save Time with Nayax
Nayax’s Management Suite provides operators and facility managers with the ability to easily upload an entire batch of cards to the server. Once these cards are in use, users can use their card or fob regularly. Nayax has also developed a unique feature that allows operators to create cards and upload them to the system when a user performs their first transaction. This reduces operational costs and initial prepaid card setup time.
These efforts can be further streamlined with Digital Prepaid Cards that are offered in payment apps such as Monyx Wallet. With Monyx Wallet, consumers can top-up their credit or prepaid cards and receive a top-up bonus. Operators can also use Nayax Core (formerly NayaxVend), Nayax’s management suite to create promotions, discounts, punch cards, and other marketing campaigns that drive more revenue by boosting customer engagement.
With Monyx Wallet, operators can create branded prepaid cards. These customized cards can display their logos and colors and be used to market and promote their products.
Above, you can see Little Mizz Everything Laundromat Services in Australia with VPOS Touch card readers that can accept prepaid cards.
Additional Benefits of Prepaid Cards
With Monyx Wallet, operators can benefit in the following ways.
Accept More Payment Methods
By accepting a variety of payment methods, operators give their customers a choice in how they pay, ensuring that they never miss out on a sale.
Engage with Customers
By providing customers with rewards and special offers, operators increase their engagement. Monyx Wallet also has gamification tools which further incentivize consumers to purchase with the app.
With Monyx Wallet, operators can automatically refund their customers, helping them save valuable time and optimize their operations.
Decrease Operational Costs
With prepaid cards being digitized, operators don’t have to spend any money on physical cards or card replacements. This also makes it easier for customers to reload their cards.
Provide Customers with a Better Experience
Buying a product or service has never been easier. With Monyx Wallet, every transaction is seamless and worry-free.
All of the above leads to more customers and therefore more sales.
Looking to reward your consumers? Want to start implementing prepaid cards? Get started with Nayax today!