A bank-owned prepaid card "does no harm but yet still gives [consumers] a relationship with an insured depository institution," he says.
Not only will consumers benefit from the acquisition, but banks prepaid card programs will also grow. Prepaid cards sold through banks see more success, says Aufseeser. Banks see longer relationships, higher direct deposit and more active use from their prepaid card products.
"While the deal may take some time to demonstrate its full effects, it will be valuable in the long run," Jackson says.