A prepayment voucher lets you purchase a physical voucher containing a code. This can then be used to pay for services and goods online.
In the world of digital wallets and global payment services, buying a voucher seems like an archaic way to pay for a service. Many may write it off as a relic, confined to the dustbin of payment method history like a traveller’s cheque. Yet in the age of AI and increasing online fraud levels, safer methods such as this are making a comeback, and they have distinct advantages for businesses.
The Concept of the Prepayment Voucher
Prepayment vouchers are a stored-value item. Unlike credit or debit cards, they are not linked to a bank. Instead, they contain a code, usually revealed beneath a scratch-off covering once it has been purchased. When this code is entered on a website, it provides credit to pay for the goods and services on offer. Vouchers can be purchased in varying denominations.
They can be used for a range of services, from retail to entertainment. Most people may recognise them for their popularity with gaming stores, like PlayStation, Nintendo, or Steam. Gambling companies like Betway have even begun to introduce their own pre-payment cards. This allows people in areas where payment and banking services may be unstable to have a solid, safe way to charge their accounts. Once they have bought a voucher and punched the number in, they are then allowed to use its services such as sports betting, casino products and lottery-style games.
The Benefits Brought to a Brand With Prepaid Vouchers
Prepaid cards can be generic, multi-retailer cards and cover a wide range of retailers and outlets. Yet many can also be personalised and contain the logos and graphics of a given company. When you see them at a kiosk or behind a checkout, they act as an immediate form of real-world advertising.
This real, in-person experience forges a connection that keeps people connecting time and time again. Additional benefits can also be added to them. For example, people who pay using a prepaid voucher may get added promotions, rebates, or be entered into VIP schemes.
As mentioned, it also lets a brand reach new areas. In places where traditional banking is scarce, or areas with poor connectivity, a prepaid voucher can be a lifeline. Customers can go into shops and pay for them with cash, instead of the ‘invisible’ money used online. This helps them budget, and this positive reinforcement will help them forge connections with your brand.
The Benefits of Prepaid Vouchers to a Business
When your company uses prepaid vouchers, it can hit the double whammy: Increased spending and foot traffic. Many people will choose to come into a store to buy these vouchers, either at your business or from a third-party vendor. They may do this to buy cards as gifts, or to use later down the line. There are also a large number of prepaid vouchers that never get cashed in. This means in some instances, your company may have profit without even providing a product.
Prepaid cards can also motivate customer behaviours. They can be used to push customers toward specific purchases, or can get them to attend events or provide market research details.
A big challenge for businesses is not just in accepting these vouchers, but doing so smoothly and efficiently. In the age of omnichannel expectations, customers expect to use them via QR codes, wallets, or directly when shopping. Any problems when doing so can damage your brand and make people avoid their use in future.
Innovative Ways to Use Prepaid Vouchers
Prepaid vouchers don’t just have to be sold to consumers. Many companies are using them in innovative ways. One of these is to use them in promotions. Acting as instant cash equivalents, they can help increase retention, win back lapsed customers, and build brand awareness.
They are even being used internally to reward staff. By issuing vouchers, expenses can be reimbursed without the long paper trail. Vouchers could be used for groceries or fuel, for example. In many cases, they can just reward your staff for a job well done.
There are also many cross-border benefits to prepayment. International transfers can take some time. Bank transfers may stall, or cross-border wires may fail. With prepaid cards, all you need to do is send a code that someone can cash in at the other end.
Prepaid vouchers can be a great boost for a business. Either by including your company on multi-brand vouchers with other companies, or a single-brand item, you will soon see the benefit. This will not only place your brand in new physical locations, but also provide online payment options to those who may otherwise have been excluded. In a world where choice and personalization are key, you must decide if you can afford not to onboard them.