What is a Stored Value Card (SVC)?
These cards are a hybrid financial instrument, most similar to a bank debit card. However, instead of opening a bank account, the funds of the cardholder are pooled with those of other cardholders in the card issuers bank account. The card can be purchased and issued immediately. This means that un-banked people can buy a Stored Value Card at retail, through their community, or receive one from their employer and receive the same benefits of electronic transaction processing that a banked customer can. Stored Value Cards represent a significant opportunity in today’s global financial world. Many industry experts see SVCs becoming the next “killer app” in the financial services world. The SVC market has exploded in the last few years (mostly in the gift card area), and un-banked and under-banked consumers are beginning to see SVCs as alternatives to traditional bank accounts.
