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What's Next in Prepaid: Innovative Use Cases to Watch

The CPPO interviewed Arvind Agarwal, who is head of platform for Mydoh, a money management app for parents and kids by RBC, to share his thoughts on the prepaid market, including what's behind its growth, trends to watch and the biggest innovation use cases.

What do you think is the biggest force propelling the prepaid market’s growth today?

The biggest force propelling the growth of the prepaid market today is a combination of factors, including changing consumer preferences, technological advancements, and strategic business moves.Customers are increasingly looking for convenient, secure, and flexible payment options, and prepaid cards have emerged as a versatile financial tool that caters to these demands. Moreover, businesses are leveraging prepaid accounts in mobile apps/platforms to enhance payment features, ensuring a user-friendly experience. This facilitates expansion into new verticals like e-commerce, gig payments, and corporate expenses, making prepaid cards vital in the modern payment frameworks.

What’s one product or service that prepaid is impacting today that isn’t getting enough attention in the payments industry?

The prepaid card market is impacting the payments industry in various ways, and one area that may not be receiving enough attention is its impact on financial inclusion, especially among a younger demographic and unbanked people. These demographics benefit from the accessibility, flexibility, and financial inclusion offered by prepaid options. Younger users appreciate the control over spending and saving, while unbanked Canadians find a viable avenue for participating in digital financial services, contributing to a more inclusive financial landscape. At Mydoh, we’re proud to play a significant role in enhancing financial literacy and inclusion among children and teenagers in Canada. The platform is designed to help kids develop smart money habits, earn their own money through tasks, spend it wisely using their virtual or physical prepaid card, and save for their goals.

What’s the biggest prepaid innovation use case you’re seeing today?

Hyper-personalization, enabled by instant issuance and seamless push provisioning to a mobile device, is a significant innovation. This approach is particularly well-suited for prepaid cards, as they are easier to issue than credit or traditional debit cards.Cardholders increasingly want a set of cards that fit their daily shopping and paying needs. They choose which card to use based on how easy it is, how they can change it, and how it includes everyone. At Mydoh, we strongly believe in personalizing the card journey and give users different ways to make their card special, like virtual-only cards, numberless physical cards, and cards with custom artwork.

How can the prepaid market best position itself to navigate today’s regulatory climate?


To best position itself to navigate today's regulatory climate, the prepaid market should focus on understanding and adapting to the various legal and regulatory issues that could significantly impact the industry. This includes being aware of how other existing federal and provincial laws might also apply to the prepaid market.


For instance, Bill 101 and Bill 96 are both language laws but can have various implications for prepaid businesses operating in Quebec. One needs to ensure that their services and communications comply with the French language obligations set out in these bills.



This article is intended as general information only and is not to be relied upon as constituting legal, financial, or other professional advice. A professional advisor should be consulted regarding your specific situation. The information presented is believed to be factual and up to date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products, or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.



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