Prepaid card supplier Emerchants made progress in its transition from its non-reloadable gift card base to a higher margin reloadable business model during the six months to December.The company has 591,000 active cards on issue - an increase of 12 per cent over the previous corresponding period.A total of A$79.7 million was loaded on to Emerchants cards. There was a 15 per cent increase in the amount loaded on to non-reloadable cards and a 29 per cent increase in the amount loaded onto reloadable cards.The company aims to be a supplier of prepaid cards to companies, government departments and not-for-profit organisations. During the December half it was approved as a payer institution member of the BPay scheme. This means that users of Emerchants' cards will be able to pay their bills using BPay.In July, the company received a letter of intent from the Queensland Department of Communities, Child Safety and Disability Services confirming acceptance of a program specification for a debit card product. The department plans to use debit cards to distribute emergency assistance to victims of disasters.It also signed an agreement with Ladbrokes Digital Australia under which reloadable cards will be marketed to the latter's online gambling customers.And it signed an agreement with Mitsubishi Motors Australia which will see its cards being used for the payment of sales incentives and commissions.All this activity is yet to translate into income, however. Revenue for the December half was $2.4 million - unchanged from the previous corresponding period.The company had a cash flow deficit of $1.4 million from operating activities, compared with a deficit of $1.8 million in the previous corresponding period.The net loss for the period was $2.2 million, compared with $3.6 million in the previous corresponding period.