Tipalti Launches a Prepaid Debit Card to Help Facilitate Payroll for the Unbanked

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

Tipalti views 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. In turn, that makes the cards an attractive payment option for companies that rely on partners in countries with limited financial infrastructure, the company says. 

“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, financial applications, at market-research firm International Data Corp., says in a prepared statement.

Cardholders can make online and in-store purchases and withdraw cash from ATMs. The cards, which feature overspend and fraud protection, will be issued as virtual cards. Overspend protection is limited to the funds available on the card, says Roby Baruch, Tipalti’s chief product officer, in an email message. 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. That feature is also 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 prepared statement. “Expanding our prepaid cards offering with the help of Intercash adds tremendous value for businesses that depend on a global community of partners.”