The WSJ states that the prepaid credit card company is booming and it is likely to reach $200 billion in income by 2013. The largest prepaid credit card business, Green Dot Corp., raised $160 million with its IPO final thirty days and it has seen its stock increase by 30 % since that time. The second-biggest business in the market, NetSpend Holdings Inc., hopes to increase $200 million in its very very own coming IPO. It is great news.
Prepaid cards are utilized as debit cards, using the distinction that they’re perhaps not connected to a bank account, but are drawing funds from a free account with all the issuing bank.