These prepaid debit cards function much like a Cash App card, allowing users to spend funds held in a linked digital account. They provide a physical or virtual card connected to a balance accessible via a mobile app, enabling online and in-store purchases, as well as ATM withdrawals in some cases. A common example is a card offered by a neobank that integrates with its mobile banking platform.
These types of cards offer several advantages. They provide a convenient way to access and spend digital funds without needing a traditional bank account. They can also be useful for budgeting, allowing users to load specific amounts and track spending easily. Historically, prepaid cards have served as an alternative banking solution for individuals who are unbanked or underbanked.