A new survey finds 63% of U.S. adults bought prepaid cards in year preceding the June 2015 survey, up from 61% in 2015 and 56% in 2014. Retailer-specific cards are the most popular type of prepaid cards, bought by 45% of U.S. adults, up from 41% in 2015.
Mercator Advisory Group’s most recent Insight Summary Report, based on the annual Payments survey in the CustomerMonitor Survey Series, conducted in June 2016, reveals much of the growth in prepaid, and now, even in retailer-specific cards is from young adults, particularly 25–34 year olds. Retailer specific cards are typically bought by consumers of all ages, but recently, young adults are most likely to buy even retailer-specific cards, nearly 3 in 5 young adult respondents indicating they bought them during the previous year, up from less than a half of young adults who did so in the 2015 survey.
As retailers introduce new mobile apps, often with mobile payment options that include their retailer prepaid cards, young adults begin to buy retailer cards for their own use, so the cards are becoming a primary payment tool and not just used as gifts.
Women continue to be more likely than men to buy retailer-specific cards, as 49% of women but only 40% of men bought this type of card within the previous year. However, the number of men buying retailer-specific cards has grown steadily since Mercator Advisory Group began tracking purchase of this type of prepaid card in 2013.
Consumers and Prepaid: Growing Use, Especially for Retailer-Specific Cards, the latest report from Mercator Advisory Group, presents survey findings based on responses to an online survey of 3,009 U.S. adults conducted in June 2015 as part of the CustomerMonitor Survey Series.
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