The use of prepaid cards for banking the poor

Prepaid products can become an effective instrument for banking the poor, as they can be used for collecting microdeposits and so operate as a low-cost account. Prepaid platforms have characteristics that make them especially useful for developing low-cost microfinance business models. Indeed, customers using prepaid systems do not need bank accounts or debit or credit cards. Prepaid issuers do not need to develop or invest in new technologies, as this mechanism can be used on a range of platforms, including PCs, mobile phones, hand-held and set-top boxes. Furthermore, prepaid products are specially designed for offering services demanded by the poor, such as micropayments, microdeposits and even microcredits. Lastly, they allow users to monitor their cash flow by receiving statements (some providers offer this feature online, others provide physical statements) or accessing balances through PCs, mobile phones, hand-held and set-top boxes. Besides collecting microdeposits, prepaid products (or SVCs as they are called in the United States) offer other services that can be very valuable for serving the unbanked population. As explained in this paper, prepaid products generally lack the identification and credit requirements that effectively bar millions of individuals from opening traditional bank accounts, especially in the United States. Moreover, prepaid products can be purchased and reloaded at a growing number of locations other than bank branches, such as check cashers, convenience stores and other retailers. Prepaid instruments can also provide immediate availability of funds at a cost that, in some cases, is lower than other alternatives for unbanked consumers. Also, prepaid products are difficult to overdraw, thus reducing the likelihood of unexpected fees. Lastly, many prepaid issuers offer some sort of bill pay option, especially branded cards that enable signature-based transactions, and a significant number of them offer remittances.Prepaid card; microdeposits; mobile phone; store value card; e-money; banking the poor;

The Rise of Mobile and the Diffusion of Technology-Facilitated Trafficking

In this report, researchers at the USC Annenberg Center on Communication Leadership & Policy (CCLP) reveal how those involved in human trafficking have been quick to adapt to the 21st-century global landscape. While the rapid diffusion of digital technologies such as mobile phones, social networking sites, and the Internet has provided significant benefits to society, new channels and opportunities for exploitation have also emerged. Increasingly, the business of human trafficking is taking place online and over mobile phones. But the same technologies that are being used for trafficking can become a powerful tool to combat trafficking. The precise role that digital technologies play in human trafficking still remains unclear, however, and a closer examination of the phenomenon is vital to identify and respond to new threats and opportunities.This investigation indicates that mobile devices and networks have risen in prominence and are now of central importance to the sex trafficking of minors in the United States. While online platforms such as online classifieds and social networking sites remain a potential venue for exploitation, this research suggests that technology facilitated trafficking is more diffuse and adaptive than initially thought. This report presents a review of current literature, trends, and policies; primary research based on mobile phone data collected from online classified sites; a series of firsthand interviews with law enforcement; and key recommendations to policymakers and stakeholders moving forward

The electronification of transit fare payments: a look at the Southeastern Pennsylvania Transportation Authority's New Payment Technologies Project

Over the past decade many of the nation's largest public transit providers have gone from fare-payment systems based on cash and coin to more modern electronic systems that implement payment cards, including agency-issued prepaid cards, credit cards, and debit cards. On September 16, 2008, the Payment Cards Center of the Federal Reserve Bank of Philadelphia hosted a workshop to discuss the challenges and opportunities facing the Southeastern Pennsylvania Transportation Authority (SEPTA) as it attempts to redesign its transit-fare payment system to accept payment cards. Jerry Kane, manager of SEPTA's New Payment Technologies Project, led the workshop. This paper summarizes Kane's presentation and the ensuing discussion. In addition, this paper offers some thoughts on why the modernization of transit-fare payment systems has begun around the country; what obstacles still stand in the way of using credit, debit, and prepaid cards to pay fares; and what this movement means for consumer payments generally.Payment systems ; Credit cards ; Debit cards ; Transportation

Definition of final crime risk assessment mechanism to measure the risk of theft of electronic products and proof them against theft

This report presents research conducted as part of a two-year European project (Project Marc) which aims to develop a mechanism to assess the risk of theft of electronic products and to take steps to make that mechanism operational. The view of the authors, reflected throughout this report, is that the task of developing such a tool is vital yet daunting. It is vital because of the need to build upon the gains made within other sectors and the need to seize the opportunity presented by the realisation that crime trends can be explained in terms of the supply of opportunities, that reducing the supply of opportunities will reduce crime and that these tasks are not the sole responsibility of the police. It is daunting because in spite of extensive evidence for the efficacy of well-designed and implemented opportunity reduction measures, the problem comes when the crime to be prevented (theft of electronic products) is widespread but not generally devastating to its victims and when opportunity reduction finds itself in tension with commercial interests. The report sets out the process of developing a crime risk assessment mechanism and the justification for pursuing the options taken. Initial consultation with a variety of stakeholders yielded the common view that the crime risk assessment mechanism presented must a) measure both risk and protection (ensuring that the two are commensurate), b) reflect the perspectives of those who would be tasked with implementing it and c) reflect the language of stakeholders from a variety of European states. Taking these views on board, the authors conducted an extensive consultation with stakeholders from four sectors (insurance, consumers’ organisations, law enforcement and manufacturers of electronic products) from ten European member states. Participants were asked to rate a variety of electronic products in terms of both vulnerability and security and to explain the ratings they gave. Their responses were used to develop two checklists which incorporate a variety of factors, weighted according to the frequency with which they were expressed. The authors suggest that the crime vulnerability checklist developed measurement. The security measurement by checklist was concluded to be inappropriate, since it would lead to limited and unimaginative security, and a case-by-case assessment by domain experts is advocated, in the light of measured vulnerability. A two-pronged approach to rating of electronic products (and possibly services) is outlined based upon approaches already deployed in relation to food standards

Privatizing the Metro Card: Transportation Equity in an Open-Loop Smartcard Fare Payment System

The unbanked – individuals who lack a bank account with a mainstream financial institution – are one of the more broadly disadvantaged groups in American society. There is a great deal of demographic overlap between the unbanked as a cohort and other marginalized groups, notably undocumented immigrants, low-income Blacks and Latinos and non-native English speakers. These groups are an important constituency for transportation agencies in that they are more likely to travel by transit than other Americans. As many transit agencies transition their fare payment systems to radio frequency identification (RFID)-based, “contactless” smartcard or open payment technology linked to a rider’s bank account, there are growing opportunities to enhance multi-modalism in passenger trips, reduce operations costs, increase system profitability, and expand access to fare payment media. However, due to equity requirements of the Civil Rights Act, transit agencies must ensure that the smartcard technology also accommodates the unbanked. Ensuring that transit fare payment systems adequately serve the unbanked requires an assessment of New York’s unbanked population beyond that which is available in current academic literature. A 2011 study from the NYC Department of Consumer Affairs identified several New York City neighborhoods with the highest proportions of unbanked and underbanked residents. Through intercept surveys in two of these majority-unbanked neighborhoods – Fordham (Bronx) and Bushwick (Brooklyn) – this study attempts to clarify the travel behavior and fare payment characteristics of the un(der)banked. In addition, this study investigates potential fare policy alternatives in an open payment system that would adequately accommodate the transportation needs of the unbanked. To articulate policy recommendations to meet this objective, this study includes structured interviews with transit fare policy experts in the public, private and nonprofit sectors. These interviews explored how transit agencies can select the most appropriate fare payment technology; effectively partner with retailers and alternative financial services (AFS) to make its new fare payment medium accessible to un(der)banked communities; and establish performance metrics to monitor the fare payment system’s long-term equity

Pre-paid Petrol Refill Smart Card for Petronas Stations

This document represents the final dissertation for the Final Year Project. The purpose of the dissertation is to present the documentation ofthe project. The title in question is Prepaid Petrol Refill Smartcard for Petronas Stations. The title itselfexplains the general idea behind the project is to provide an advanced stored value of money in electronic card for paying petrol refilling at Petronas stations. It is also to promote a cashless environment at all Petronas stations. In the problem statement section, discussion will be concerning problem identification and the significance of the project, which is to provide a more efficient and reliable payment system for petrol refilling. The scope of study will focus on smartcard technologies and its realization into a prepaid system. With that in hand it is hopeful that a workable prototype will be able to be produced to demonstrate its usefulness in a real world environment. Methodology will be based on the Waterfall model which consists of five steps which are planning, analysis, design, and implementation and testing. Findings and its relevancy to the objectives of the project will conclude the report based on the discussions mentioned above. Also, additional information will be included where seemed appropriate. In Results and Discussion, topics will be about the critical segments of a smartcard technology implementation and some of the issues in using smartcard in today's electronic commerce. i

Challenges Faced by Persons with Disabilities Using Self-Service Technologies

Foreseeable game changing solutions to SSTs will allow for better universal access by better implementing features that are easy and intuitive to use from the inception. Additional robotic advancements will allow for better and easier delivery of goods for consumers. Improvements to artificial intelligence will allow for better communication through natural language and alternative forms of communication. Furthermore, artificial intelligence will aid consumers at SSTs by remembering the consumers preferences and needs. With all foreseeable game changing solutions people with disabilities will be consulted when new and improved SSTs are being developed allowing for the SST to maximize its potential

Poor choices: the limits of competitive markets in the provision of essential services to low-income consumers

A major study of the problems faced by the poor in the market for seven essential services in the UK - energy, food, housing, water, telecoms, transport, and financial services. Together these represent 60% of spending by the poorest 30% of households