Prepaid is the most rapidly growing segment of the card industry, supported largely by cardholder comfort with and understanding of the product. As diverse and expansive as the prepaid industry has become, however, some misconceptions still linger. Some think that high fees are always applied to the funds, or that the audience for prepaid cards is only the unbanked.
The findings of a study conducted by GfK Custom Research reveal these ideas to be true misperceptions. GfK surveyed individuals at various income levels: those earning less than 25k annually, those earning between 25k and 75k and those with incomes above 75k. The results showed that 60% of people surveyed had experience using prepaid cards. Across the socioeconomic groups, satisfactions ratings varied only slightly. Further, when the groups were asked to compare prepaid cards to other forms of payment, cards were rated greater than or equal to traditional check cashing services or cash.
While types of goods purchased differed between the groups, the preference for prepaid was clear. Increased ease of online spend and the development of mobile wallets in recent years have driven the flexibility and usability of prepaid even higher, and we anticipate even more growth in the prepaid space as these advancements continue.
Click here for more details and findings from the study: