A number of prepaid card providers are increasingly positioning their GPR (General Purpose Reloadable) prepaid cards as a checking/debit alternative. One such startup OnMobile, aims at providing GPR cards to unbanked as well as banked.
OnBudget was founded in mid-2012 by Jim Collas (CEO) with co-founder Jeffrey Hall (COO) and Jonathan Shultz (CFO). The OnBudget budgeting solution consists of a prepaid MasterCard and associated Smartphone App.
GPR cards are not only appealing younger consumers but also parents who are eager to control, classify and track their children’s expenses. It has gained usage because of its convenience and ease of payments. Thus, it has become one of the fastest growing segment of the prepaid market. The target audience is huge and growing exponentially.
The solution is an optimum mix of budget management; tracking spending’s trends and provides the user with valuable saving insights.
How does it work?
- Based on unified end user interface, OnBudget allows users to either setup monthly top-ups or event based top-ups.
- Later the smartphone app allows user to analyze spending categories, set and track monthly budgets status and set limits per category.
- This app at the backend keeps processing the transaction data to find valuable insights about the spending patterns and later proposed budgeting tips for the user.
"The No. 1 reason that banked consumers use prepaid cards is to help them budget and control their spending," said CEO Jim Collas. "Getting real-time, accurate information for where you're spending is going is empowering. OnBudget is a simplified version of other PFM products like Intuit's Mint. If Mint is a spreadsheet, OnBudget is a basic calculator,” he added. OnBudget's preconfigured budgets provide a basic set of functions that suffice for most consumers.
With this innovative prepaid card product, OnBudget successfully addresses this fast growing segment as well as the most lucrative market segment of the prepaid debit card market i.e. the middle income “banked consumer” segment (with annual incomes between $50,000 and $200,000).