In an effort to modernize the Postal Service and increase its revenue, United States Postal Service is looking into entering the digital currency market, according to a new report by the Office of the Inspector General. The model that they are following helped saved Poste Italia (Italy’s equivilanet to the USPS).
According to the report, prepaid options have become more popular in the Unites States because of the rising number of unbanked and underbanked Americans. The fluxuations in the economy have forced people to look for options that allow them to control their budget better and that cost less than the trending banking fees.
Despite its advantages, USPS believes that the prepaid market has some shortcomings. This is because for-profit companies issue cards in areas that rural markets cannot easily access. Using their already existing infrastructure, the Postal Service can step in to the prepair market, aiding those who are underbanked and unbanked, and also help the bottom line.
In addition, a USPS prepaid card can be the best way for the federal government to distribute social benefits. Agencies are going to phase out paper checks by 2013, so the USPS is the best network to facilitate this change because they are already located in almost every town in the US.
For more on the story, read http://www.mybanktracker.com/bank-news/2011/10/06/usps-eyes-prepaid-card-market/