In the current era of digitisation, digital cards are slowly occupying the status and market space that had previously been held by cash, which is gradually slipping from its numero uno status. This tectonic shift in payment methodology, including the use of prepaid cards, is predominantly visible in corporations and businesses, and growing exponentially. Several reasons can be attributed towards this shift: firstly, opting for and maintaining prepaid cards is effortless and hassle-free; and secondly, it is highly convenient for employers to keep track of employees' expenses through such prepaid cards.

A significant perk of using prepaid cards for employees is tax benefit. For instance, the meal cards circulated to employees fall under this ambit. Non-alcoholic beverages and free food offered to employees during work hours are exempted from taxes. Additionally, using prepaid cards offer a cap to each of the employees specifically streamlined for their benefit.

Deploying prepaid cards in place of vouchers and hard cash has helped employers keep tabs on their employee’s expenses. Employers can replenish these cards within a limit for their employees. Moreover, prepaid cards are being directly linked with the companies’ expense management platform, which provides instant access to the spending of the employees. Concurrently, it also enables employees to receive instant approvals on reimbursements, tax compliances and so on.

Corporate Prepaid Cards have also accelerated employee retention. With the help of the digital gifts and rewards feature of prepaid cards, employers have fostered higher employee satisfaction and retention. Such bespoke Multi-Wallet Prepaid Cards help bolster employee motivation and further stimulate their performances, ultimately contributing to their growth and quick expansion of the companies. Moreover, corporates these days offer multiple digital gift solutions through prepaid cards which cater to the current corporate workforce. Such as personalised gifting options, festive season centric digital gifting options, etc. Thereby offering countless choices to employers to procure gifts and enhance employee experience.

The use of prepaid cards has also helped diminish fraud cases, usually very common with digital cards. The amounts loaded in a prepaid card are significantly smaller when compared to debit and credit cards, so the risks of fraudulent transactions are infrequent. Moreover, a prepaid card is never linked to a bank account and always comes with a PIN. For each transaction, an OTP is sent to the customer’s registered phone number, which makes it much safer than a debit or credit card. Apart from that, cardholders are provided with even an insurance cover on prepaid cards which makes for a safe and secure transaction.

A few other perks of using a Multi-Wallet Prepaid Cards is that users can have complete control over their expenses. As said earlier, the upper limit of a prepaid card is constricted and makes it easier for users to stay within their budget. Prepaid cards also come with the benefits of cash back and reward points on purchases, making them no lesser than credit and debit cards.

The world of digital spending has evolved remarkably and will continue to unfold and expand in ways unknown in the coming future. The pandemic has been a crucial reason for the ways people spend and control their expenses these days. Prepaid cards have been an excellent means in which people could spend cautiously and within their limits of expenditure during these trying circumstances.

The author is Founder, Zaggle and ZikZuk

DISCLAIMER: Views expressed are the author's own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.