Packaged Facts: Prepaid Cardholders Among Leading Users of Mobile Payments

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Aug 26, 2014, 01:45 ET

ROCKVILLE, Md., Aug. 26, 2014 /PRNewswire/ -- American prepaid card users are not only ready for mobile payments, they are already leading users. This underscores the need for mobile-forward prepaid card program strategies that increasingly emphasize cardholder connection to a wider array of features and a broader financial services ecosystem, according to Prepaid and Gift Cards in the U.S., 4th Edition, a recent report by market research publisher Packaged Facts.

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The report, which includes data from Packaged Facts' May 2014 national survey, can be found at: http://www.packagedfacts.com/redirect.asp?progid=86591&productid=8081197.

"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," says Packaged Facts research director David Sprinkle.

Prepaid card marketers should keep in mind that, according to Packaged Facts survey results, smartphone penetration is actually higher among groups underrepresented by traditional banking products and services. Roughly 89% of consumers from underbanked households have a smartphone; and even two-thirds (64%) of consumers from unbanked households have one. Competing in today's prepaid market thus invariably means connecting with cardholders through mobile technology.

In addition, younger adults (age 18-34) do more card shopping and have a wider variety of cards in their wallet. Based on survey results, Packaged Facts estimates that prepaid cardholders age 18-34 have an average of 2.3 prepaid cards in their wallets. While direct deposit clearly influences cardholder retention, it is not enough to keep these cardholders engaged. Mobile-forward platforms with Millennial-era options such as P2P and bill payment will invariably entice 18-34s to linger longer.

For more information on Prepaid and Gift Cards in the U.S., 4th Edition and other reports in Packaged Facts' industry-leading catalog of financial services market research reports please visit: http://www.packagedfacts.com/.

About Packaged Facts – Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, consumer packaged goods, and pet products and services. Packaged Facts also offers a full range of custom research services.

Please visit Packaged Facts on LinkedIn, Twitter and Google+ for more insights.

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SOURCE Packaged Facts