Western Union is piloting a scheme that allows tenants of a housing association in South East England to receive housing benefit payments by prepaid card.
The scheme also allows registered social landlords to draw money from the tenant’s card, preventing rent arrears.
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Fiona Duncan, vice president prepaid EMEA at Western Union, said: "This prepaid card enables tenants and landlords to conduct transactions securely and with minimum fuss."
"We have seen a successful start to the programme and look forward to developing our offering in this area, supporting tenants and landlords and helping them work together."
Once the rent has been paid, the MasterCard prepaid card allows tenants to pay for goods and services wherever MasterCard is accepted. However, the card has no credit facilities, ensuring that tenants cannot fall into debt through use of the card.
Eusebio Barata, director of operations at Moat, said: "We’ve successfully implemented Western Union prepaid cards with a number of residents for the payment of their Housing Benefit.
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By GlobalData"This has proved to be a positive move for residents, who feel more prepared for Universal Credit and their rent being paid on time.
"It is also positive for Moat as we are acting early to support residents in paying their rent themselves, to reduce the risk of increasing arrears when the benefit payments change."
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