Why has stored-value not caught on?
Sujit Chakravorti
Journal of Financial Transformation, 2004, vol. 12, 39-48
Abstract:
Why have general-purpose stored-value cards been unsuccessful in penetrating the U.S. market? Three necessary conditions for a payment instrument to be successful are discussed: consumers and merchants need to be convinced of its advantages over existing payment alternatives for at least some types of transactions; payment providers must convince consumers and merchants simultaneously of its benefits to achieve critical mass; and assure them that adequate safety and security measures have been implemented. This article discusses the credit card industry’s success in meeting these necessary conditions and general-purpose stored-value issuers’ failure to meet them to date.
Keywords: Payment Cards; Stored Value; Consumer Finance (search for similar items in EconPapers)
JEL-codes: D53 G21 L11 (search for similar items in EconPapers)
Date: 2004
References: Add references at CitEc
Citations: View citations in EconPapers (4)
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Related works:
Journal Article: Why has stored value not caught on? (2000)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:ris:jofitr:1260
Access Statistics for this article
Journal of Financial Transformation is currently edited by Prof. Shahin Shojai
More articles in Journal of Financial Transformation from Capco Institute 77 Water Street, 10th Floor, New York NY 10005.
Bibliographic data for series maintained by Prof. Shahin Shojai ( this e-mail address is bad, please contact ).