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Pre-paid debit card market to "grow"

The launch of a new travel money card system has highlighted the emergence of a new area in the payments market.

Travel insurance provider InsureandGo has announced details of its new product – a travel debit card which allows users to transfer money from their accounts at a set exchange rate, meaning they can avoid losing out to poor rates when using a foreign ATM or during a point of sale transaction.

Produced in conjunction with MasterCard so that it can be used globally, the pre-paid card can also protect users against fraud, because when stolen or cloned it will only allow access to the balance on the card, not the user's whole bank account.

InsureandGo director Perry Wilson said he is expecting the product to catch on in the travel industry, although some people may be wary of it initially: "Because it's a new concept, people need to get their heads round it.

"It's exactly the same as a pay-as-you-go phone, it's a safe way of keeping your costs down whatever you do."

The standard debit card has now been in use for 20 years, with payments association Apacs recently issuing a report on how its introduction has altered personal finance in the UK, as 41 million people now regularly use a debit card.

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04/06/2007 15:49:43

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