How Banks Can Benefit from Offering Both Digital Wallets and Prepaid Cards

The way customers pay has changed forever since the digitalization of payments. In fact, in 2024 alone, digital wallets accounted for half of global e-commerce transactions, and prepaid cards recorded a 12% growth in usage worldwide. These numbers prove one thing: you can’t ignore either of them.

Think about your customers for a moment. Some prefer the speed and convenience of a digital wallet. While others still want the familiarity and security of a prepaid card. And many want both. Hence, if you only provide one option, you risk losing relevance.

Because today’s banking customers expect flexibility. They want to move money instantly, make controlled payments, and manage funds digitally with ease. If you give them both tools, i.e, digital wallets and prepaid cards, you don’t just meet expectations, you exceed them.

So, how can your bank benefit from offering both? 

In this blog, let’s explore the opportunities and see why combining prepaid cards + digital wallets is not a debate, but a winning strategy.

Come along, let’s catch the rhythm.

Why banks should offer both digital wallets and prepaid cards

You can’t meet every customer’s needs with one option alone. So instead of putting it as prepaid cards vs digital wallets, offering both ensures wider reach and stronger relevance.

Let’s break down how you serve different needs and expand inclusion with these dual solutions.

To meet diverse customer needs

Your tech-savvy customers want wallets for QR codes, online shopping, and instant peer-to-peer transfers. But many still rely on prepaid cards for offline purchases, ATM withdrawals, or controlled family spending. 

However, if you offer both, you can address every preference and expand your reach.

To expand financial inclusion

A prepaid virtual card allows unbanked and underbanked individuals to participate in the financial system. At the same time, digital wallet payment platforms open doors to a wider digital economy. 

Together, they make banking accessible to groups that traditional services often overlook. And this is how you can step into markets with combined technologies. 

Key benefits for banks offering both solutions

The value of combining prepaid cards and wallets goes beyond convenience. It drives measurable growth and builds stronger relationships. 

Let’s explore the specific benefits your bank can unlock by offering both solutions together.

Increased customer retention and loyalty

When you give your customers multiple ways to manage money, you make their lives easier. They don’t need to look for alternatives. That loyalty translates into long-term relationships and higher lifetime value for your bank.

New revenue streams

Prepaid cards bring you revenue through transaction fees, top-up charges, and cross-border usage benefits. On the other hand, digital wallet payment platforms add in-app services like bill payments, mobile top-ups, and merchant fees. By combining both, you unlock new sources of consistent income.

Improved cross-selling opportunities

A customer who uses your wallet may want a prepaid card for retail use. Similarly, a prepaid cardholder may try your wallet for online payments. Each product supports the other, giving you multiple touchpoints to offer additional services.

Cost efficiency in customer onboarding

Onboarding customers can be expensive for you. Although with a dual offering, you reduce that cost. Plus, you can acquire one customer and serve multiple needs within a single ecosystem. That efficiency further increases your returns on marketing and acquisition.

Strengthened brand reputation

Innovation builds trust. When you offer modern solutions that match global trends, your brand stands out. Customers see your bank as reliable, adaptable, and future-ready. That reputation helps you compete with fintechs and digital-first players.

How digital wallets and prepaid cards complement each other

Prepaid cards and wallets don’t compete; they complete each other. Together, they create a seamless system that works across every channel. Here’s how the two enhance experiences, security, and transactions when used side by side.

Seamless transactions across channels

Wallets are ideal for contactless payments, e-commerce, and peer transfers. Whereas prepaid cards work perfectly for in-store purchases and ATM withdrawals. When customers can move between the two, they experience unmatched convenience.

Enhanced customer experience

Imagine this: a customer loads money into their wallet and transfers it instantly to their prepaid card for shopping. The process is smooth, fast, and secure. That convenience drives satisfaction and makes your services indispensable.

Greater transparency and security

Digital wallets provide real-time transaction records, while prepaid cards limit overspending with controlled balances. 

Together, they give customers financial clarity and peace of mind. Security features across both solutions also protect your customers from fraud and misuse.

Real business impact of offering both

The results of providing both are not theoretical. They show up as a real competitive advantage and long-term profitability. Let’s look at the key impacts on positioning, acquisition, and sustainable growth for your bank.

Stronger market positioning

Banks that offer both digital wallets and prepaid virtual cards position themselves as leaders in innovation. Plus, you can attract attention in a crowded market by providing solutions that rival fintechs and neobanks.

Driving customer acquisition

You appeal to two groups at once: the digitally advanced who prefer wallets and the financially underserved who rely on prepaid cards. That dual appeal brings in more customers without doubling your efforts.

Long-term growth and profitability

The combined model ensures sustainable growth. You create multiple revenue streams, build stronger relationships, and future-proof your business against changing payment trends. This dual approach keeps you relevant in a competitive landscape.

Conclusion

Your customers don’t want to choose between a digital wallet and a prepaid card. They want the flexibility of both. And when you provide both, you don’t just meet expectations—you redefine them.

Offering prepaid cards vs digital wallets is not a choice. It’s a partnership. Together, they expand inclusion, boost loyalty, and fuel growth for your bank.

A robust wallet partner helps you deliver this excellent combination effortlessly. Not only this, but you get a seamless, interoperable, and scalable prepaid card in a wallet system.

Then, why settle for one side of the story when you can give your customers the full experience? Let’s power your future of payments together.