(23 September 2005 – UK) MasterCard is trying to tempt business out of the two million households in the UK which don’t have a bank account with a pre-paid plastic payment card.This is a concept that has worked successfully in the US where there are estimated to be 1.4 billion pre-paid cards being used by certain immigrant communities without bank accounts and people with poor credit records.
The idea is that the funds can be put into the cards and used to make purchases via the Internet, in retail stores and for withdrawing cash at ATMs. Cards can be topped up at Post Offices across the UK.
People using the cards will pay a ₤2 charge each time they access cash at ATMs with the card. They will also pay an upfront charge and monthly subscription fee.
The product is targeted primarily at immigrant communities in the UK, which don’t have bank accounts.