Synchology Entices Mainstream Consumers to ‘Jump’ into Prepaid (Jan. 22, 2013)
Jan. 22, 2013
Prepaid card provider Synchology is targeting a decidedly “banked” demographic with its new card offering, betting that attractive features and a simple pricing model can attract mainstream customers as an alternative to traditional bank accounts. The Jump Visa Prepaid Card offers cardholders rewards, money management and budgeting tools, free customer support and direct deposit, and pricing of either $5 per month or $50 per year. The card is issued by First Bank & Trust of Brookings, S.D.
With the Jump Card, Synchology hopes to capitalize on what could be a general shift among consumers away from traditional bank accounts and toward prepaid. According to a Javelin Strategy & Research report, 13 percent of adults in the U.S. used prepaid services in 2011, up from 11 percent in 2010. Meanwhile, the percentage of those who had used checking accounts or credit cards fell from 92 percent to 88 percent over the same period. “The opportunity is ripe for the evolution of aging, poorly designed consumer banking products,” says Synchology President and Co-Founder Doug Bobenhouse. “We spent a lot of time looking around at effective user experiences outside of the banking world and developed a product we think will really delight and engage people.”
