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Wednesday, September 10, 2014

Prepaid users tops among mobile payment users

According to researcher Packaged Facts, U.S. prepaid cardholders are among the top users of mobile payments. This synergy between prepaid and mobile is reportedly being driven by young, tech savvy consumers who use prepaid cards and smartphones in equal measure.

In Prepaid and Gift Cards in the U.S., 4th Edition, Packaged Facts said that young adults ranging in age from 18 to 34 on average carry 2.3 prepaid cards and spend more with the cards than the average prepaid cardholder. The report also showed that direct deposit has a direct influence on cardholder retention, as 60 percent of prepaid card users utilize the direct deposit feature.

Packaged Facts Research Director David Sprinkle said, "Thanks to the evolution of online and mobile technology, it’s apparent that card loyalty is not garnered from the card itself, but from the features that increasingly surround it, meaning the widening ecosystem through which the cardholder can engage easily with financial services products, services and educational tools.”

The report noted that prepaid cards are becoming portals that connect cardholders to a wide range of financial services. end of article

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