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Dalgaard Comments on the Rise of the Prepaid Card Market

April 17, 2013

Bruce Dalgaard, visiting scholar in economics, recently contributed to the article, “Ask the Experts: Taking Stock of the Prepaid Card Market,” featured on CardHub.com. The article analyzed the rise of this new-age checking account, which has been the fastest growing form of electronic payment since 2006. Despite the rapid growth of this non-traditional card, Dalgaard remarks, “Checking accounts, i.e. paper checks, will not disappear quickly, maybe not for a long time.” He says, “In part, this is a cultural demographic. We could equate checks, in a way, to land lines. Some people simply are not comfortable giving up their land line and they won’t be with checks.” However, in spite of initial consumer hesitance, experts conclude that widespread usage will eventually be the norm and that the growth of the prepaid card industry is just getting started.

Written by Anna Versen '14