Prepaid cards typically bring up images of high-fee products designed to make banks money. But Google (NASDAQ: GOOGL ) recently introduced a new prepaid card, and it could transform the industry.
In the following video, Dan Caplinger, The Motley Fool's director of investment planning, talks about the Google card and why it's different from many of its peers. He notes that the tech giant is trying to promote its Google Wallet with the card, and it's willing to go without charging any fees of its own in order to encourage the card's use. That continues a trend that American Express (NYSE: AXP ) and Wal-Mart (NYSE: WMT ) started with their Bluebird card, which was among the first mainstream prepaid cards to offer reasonable fees. Meanwhile, Dan points out, Walgreen (NYSE: WAG ) and other companies continue to release cards with higher fees. Yet they all have the common goal of driving business toward the issuer's other products.
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