7 Ways Businesses Use Prepaid Cards

Businesses use prepaid cards to simplify management.

Cash declined during the pandemic. For example, 57% of Canadians use cash less often than in prior years. Further, the prepaid card market in the U.S. is expected to grow 6% each year until 2024. These changes push companies to innovate their payment strategies.

In comparison, touchless options like prepaid Visa cards and mobile apps provide users with flexible solutions. Some businesses use these methods to give customers and employees spending freedom.

How Businesses Can Use Prepaid Cards Instead of Cash

1. Restaurant Tips

2. Local Business Incentives

3. Virtual Events and Meetings

4. University Per Diem Payments

5. Employee Recognition

6. Client Disbursement

7. Loyalty Rewards

 

Restaurant Tips

Cash tips were popular in the past, but managing them is tedious. Moreover, holding cash can be a security risk. Instead, give servers their nightly tips on prepaid cards—spendable online or in-store. Servers benefit from this convenience while restaurant owners enjoy a secure payment method.

Local Business Incentives

The tourism industry was hit hard by the pandemic. Many regions across Canada struggled to recover. But some used creative ways to boost their economies.

For example, the Fort McMurray Chamber of Commerce in Alberta, partnered with hotels to launch an incentive program. This gave visitors a Visa prepaid gift card to spend within the city limits.

“Economic recovery needs to include collective steps taken by all of us to shop local whenever we can.” Dianna de Sousa, Executive Director, Fort McMurray Chamber of Commerce

Incentives like these connect stakeholders, such as hotels, restaurants and shops. These programs entice visitors to do more, making trips more fun and motivating return visits.

Virtual Meetings and Events

Surveys show today’s employees prefer hybrid work.

For example, almost three-quarters of Canadian businesses plan to offer remote work options. This is because 55% of employees surveyed want to continue working remotely. Additionally, 80% of teleworkers prefer half of their working hours at home.

So, many businesses are flexible with meetings and schedules. However, fatigue from virtual work is a health concern. Companies’ WFH policies can include employee incentives to lessen this risk. These incentives encourage people to attend training sessions, town halls or webinars.

University Per Diem Payments

Universities are taking note. While schools often rely on outdated payment processes for athletics and aid, open-loop payments can replace their cash. Since transactions are tracked on cards, universities save on budgeting. Also, prepaid cards promote financial literacy among students who can track their spending.

Employee Recognition

Rewarding your employees is easy with prepaid cards. Unlike cheques, which take days to process, these cards offer instant funds. Moreover, gift cards can be open-loop or close-loop, enabling their use anywhere or limited to certain areas.

Client Disbursement

Businesses use prepaid cards to reimburse customers. They allow employers to avoid cheque fees and advertise with card art. By using cards with your logo, clients remember your brand at point of purchase. Your one-time investment builds valuable client loyalty.

Loyalty Rewards

Finally, prepaid cards are a new frontier for loyalty rewards. Older methods involve points, which are inconvenient. Prepaid, however, gives customers spending freedom.

At Tru, our programs also offer customer analytics. This gives your team the key to data-driven insights. These cards are available virtually, making distribution as easy as sending an email.

Make business simpler with a custom card program today.