Online payment methods for the un-banked

According to some industry forecasts, over 10 million low-income U.S. households will be brought online via municipal programs by 2010. In fact, the main impetus behind municipal networks is the economic and social development of under-served communities. Yet., most low-income families will not be able to take full advantage of the Internet: nearly 80 million people (about 36 million households) are “underserved” in terms of financial services, and most inner-city users of free or low-cost wireless broadband fall in this category.

 This mostly means no credit card, debit card or even bank account. What is the benefit of being online if onecannot purchase goods and services, including books, music, clothes, participate in auctions or send money overseas at bargain rates? Municipal governments will soon find out that providing free broadband access to households that don't have means of paying electronically will significantly hinder adoption and effective use of the service. The answer? Prepaid, reloadable cards that do not require credit or even a bank account.

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