World Class Program Management
Revenue and Profit
Leave the daily management of your prepaid card program to Latitude 19 and watch your portfolio grow. We leverage deep industry experience and platform expertise to craft and implement profitable programs.
Our multidisciplinary team is comprised of top renowned industry experts and innovators
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Continued Program Improvment
The Fundamentals of
Prepaid Card Programs
Vital to Success
Vital to success in prepaid is understanding how prepaid differs from credit and debit products. Prepaid revenue sources are quite different than those of other card products. There are no late fees or interest as with credit cards, and prepaid can’t pull on revenue from a larger product, such as a DDA account, like a debit card can.
Prepaid also suffers from a lack of stickiness — there is no DDA or lending relationship to rely on and there is rarely a large client base to whom to cross sell. Further, the fact that prepaid consumers typically use just one prepaid card introduces the additional pressure to ensure the card gets to, and stays, “Top of Wallet.”
Security & Compliance
Often consumers will discard a prepaid card after using it for just a few months. This is devastating to a program’s P&L because the program will never recoup its acquisition costs on this group of customers. Higher churn rates that typically occur in prepaid portfolios, which can be 40% or more, is the root cause of many of the challenges that prepaid card programs encounter.
Program managers must adjust to factor in the realities of prepaid cards: lower average monthly spend, lower transaction approval rates and a shorter lifespan. Because prepaid cards carry fees and are funded with consumer money, it is important to foster lasting relationships. Building in features and services that differentiate the card and provide meaningful value to cardholders is key.
Latitude 19 Prepaid Programs
Best of Breed
Prepaid programs must take into account how their product stands up — in terms of fees, usability and extra services — to traditional checking accounts, and take steps to widen the appeal of their cards. Perhaps as importantly the breadth of prepaid applications in the market dictate different value propositions. The features and associated benefits associated with each application represent a different “value of the card” to the consumer. This makes success in prepaid more complex because the use case will require different thinking and strategies to support customer engagement. Program managers must apply different methodologies to make the card useful to the consumer on a regular basis.
In prepaid, a misdirection of resources — both in terms of quality and timing — can have a devastating impact on the bottom line. A focus on cardholder acquisition without focusing on creating operational efficiencies can lead to costs spiraling out of control. Knowing when and how to balance these investments is key to success.
Customer acquisition is one of the highest costs for a prepaid program. Program managers cannot afford to have accounts churning quickly, before the program has recouped the acquisition cost. Following a high level proposition development framework helps program managers understand what to look for between market requirements, capabilities delivered that make up the product, and how to present to consumers.