[Global] Tipalti launches prepaid debit card to facilitate payroll for unbanked workers

Payables-automation company Tipalti Inc. is partnering with Intercash - a prepaid card solutions provider - to offer Mastercard-branded prepaid cards in 192 countries, including Latin America and Southeast Asia, Digital Transactions reports.

Tipalti describes the cards - which are available to the general public - as a way for businesses to pay unbanked and underbanked workers by depositing payroll funds directly to the cardholder’s prepaid account. This aspect makes the cards an attractive payment option for companies that rely on partners in countries with limited financial infrastructure, the company said. 

“Prepaid debit cards are a popular choice among domestic and global payees to receive payments because of [their] flexibility and convenience. Prepaid cards also offer a solution for underbanked or unbanked individuals,” Kevin Permenter - research director of financial applications at market-research firm International Data Corp. - said in a statement.

Cardholders can reportedly make online and in-store purchases and withdraw cash from ATMs. The cards feature overspending and fraud protection, they will be issued virtually. 

Overspend protection is limited to the funds available on the card, Roby Baruch - Tipalti’s chief product officer - said in an email. Cardholders will have the option to request a physical card. 

Cardholders in Brazil, Chile, Peru, Mexico, and Uruguay will be able to transfer funds from the cards directly to their bank accounts. The same feature is available in Europe and North America.

“Prepaid cards are a convenient, elegant way to transfer money for most of us, but they can be a critical lifeline for the unbanked and underbanked around the world to get paid reliably and without fees,” Baruch says in a statement. “Expanding our prepaid cards offering with the help of Intercash adds tremendous value for businesses that depend on a global community of partners.” 

Payables-automation company Tipalti Inc. is partnering with Intercash - a prepaid card solutions provider - to offer Mastercard-branded prepaid cards in 192 countries, including Latin America and Southeast Asia, Digital Transactions reports.

Tipalti describes the cards - which are available to the general public - as a way for businesses to pay unbanked and underbanked workers by depositing payroll funds directly to the cardholder’s prepaid account. This aspect makes the cards an attractive payment option for companies that rely on partners in countries with limited financial infrastructure, the company said. 

“Prepaid debit cards are a popular choice among domestic and global payees to receive payments because of [their] flexibility and convenience. Prepaid cards also offer a solution for underbanked or unbanked individuals,” Kevin Permenter - research director of financial applications at market-research firm International Data Corp. - said in a statement.

Cardholders can reportedly make online and in-store purchases and withdraw cash from ATMs. The cards feature overspending and fraud protection, they will be issued virtually. 

Overspend protection is limited to the funds available on the card, Roby Baruch - Tipalti’s chief product officer - said in an email. Cardholders will have the option to request a physical card. 

Cardholders in Brazil, Chile, Peru, Mexico, and Uruguay will be able to transfer funds from the cards directly to their bank accounts. The same feature is available in Europe and North America.

“Prepaid cards are a convenient, elegant way to transfer money for most of us, but they can be a critical lifeline for the unbanked and underbanked around the world to get paid reliably and without fees,” Baruch says in a statement. “Expanding our prepaid cards offering with the help of Intercash adds tremendous value for businesses that depend on a global community of partners.”