Recent data shows that as total US consumer debt levels reached USD 2.577 trillion at the end of August 2008, consumers are seeking to cut back on their reliance on credit. As a result, a major emerging trend is using prepaid debits card in order to gain a higher degree of control over spending and have permanent access to funds without running the risk of overdraft fees.

As a result, prepaid debit cards and other such alternative electronic payment solutions are experiencing fast growth, mainly due to the fact that they grant continued access to financial services such as online bill payments, online purchases and reservations without requiring that the user get a bank account or a line of credit (therefore eliminating the need for credit checks).

One example is the Houston-based electronic payment provider PreCash, which has developed a system that allows consumers to convert cash into electronic payments or branded bankcard, also leveraging offering wireless refill, bill pay, deposits, prepaid stored value and various payroll products. As a result of the increased demand for prepaid debit products in the US, PreCash so far reports a 600 percent growth in the number of prepaid debit cards placed on the market, as well as a 136 percent revenue increase between 2006 and 2007.