Shares in prepaid card firms mixed on analyst note

Shares in prepaid card firms mixed on analyst note - BusinessWeek
Shares in prepaid card industry companies were mixed Monday after a Goldman Sachs analyst outlined favorable trends for consumer adoption of prepaid cards and initiated coverage on two of the sector's largest card providers.

In a research note, analyst John Williams said prepaid card usage should grow over the next several years as consumers continue to shift from using cash and checks toward electronic payments and, in some cases, back off using traditional bank cards amid concerns over fees.

Williams also noted that prepaid cards were spared in a legislative ramp up of regulatory oversight on the financial industry.