Lawness
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The significant growth in pre-paid card utilization can in part be attributed to a growing debt-averse culture, largely driven by young adults keen on avoiding the fees that often come with credit cards or traditional accounts. In fact, last year, 80 percent of prepaid card users were millennials or Gen X-ers.
The other factor playing into prepaid cards’ increasing popularity has to do with the versatility of the cards on offer. Prepaid phone cards first came on the scene in the 1980s, and then diversified throughout the 1990s into other types of closed-loop cards that could be redeemed only at specific merchants—in other words, as gift cards.
The other factor playing into prepaid cards’ increasing popularity has to do with the versatility of the cards on offer. Prepaid phone cards first came on the scene in the 1980s, and then diversified throughout the 1990s into other types of closed-loop cards that could be redeemed only at specific merchants—in other words, as gift cards.
