A new range of 'pay as you go' banking cards are set to be launched in the UK by credit card provider Mastercard.
The 'cashplus' system - in which banking customers top up an account with cash payments before using the card to make electronic withdrawals and purchases - has already taken the US by storm with 1.4 billion cards making up a two trillion dollar market.
Crucially, the system does not allow withdrawals above the amount paid in so banking customers cannot go overdrawn or be charged interest payments, making the card popular with adverse credit customers and with non-credit banking customers such as children.
The scheme has drawbacks which may sink its chances in the UK, however, where debit card banking is already popular among those who wish to avoid credit. The banking cards will cost £9.95 and will bear a monthly banking subscription of £4.95, or one pound on every transaction.
"The potential for these cards is endless, they can be used as a straight cash card or can be adapted for specific purposes, such as for the gift card market or replacing traveller's cheques," said Phil Davies of Mastercard Europe.
"The key is the flexibility and fuelling the growth of prepay cards is essential to realising our vision of a truly cashless society."
Sarah Quinn of payment services company APACS remains unconvinced however: "I think it will need to see a big change in our behaviour if the cards are to take off over here".
"I can't see Brits being willing to pay for the cards when the majority of people can already qualify for basic banking facilities at least. If they don't qualify for that, then I think they'd prefer cash," she said.
Mastercard to launch 'pay as you go' banking card
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Mastercard to launch 'pay as you go' banking card
Fri, 02 Sep 2005
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