Two new pre-pay cards available with MasterCard

November 3, 2006

MasterCard has launched a new pre-paid travel card and gift card. The products work in the same way as credit or debit cards but are pre-loaded with funds.

According to the provider, pre-paid cards provide users with a "secure alternative" to cash without the risk of running up debt that is associated with credit cards.

Research sponsored by MasterCard has revealed that the majority of customers prefer gift cards that offer flexibility rather than those with restricted use.

In regard to the travel card, the company claims that customers would prefer a product such as this rather than traveller's cheques owing to improved safety, better exchange rates and the provision of a separate source of travel funds.

Chris Reddish, the head of pre-paid for MasterCard Europe, said: "Consumer demand for gift and travel cards is growing.

"Although consumers have become accustomed to using gift vouchers and traveller's cheques, they are now looking for solutions that are more globally accepted, convenient, and secure than cash and vouchers. These new pre-paid MasterCard cards provide the perfect solution in each of these areas."

The lender predicts that pre-paid cards will eventually displace gift vouchers, traveller's cheques and foreign currency sales.