UK Cost of Living Crisis Drives 118% Increase in Prepaid Card Use

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May 16, 2024, 08:58 ET

With 1 in 4 Users Using Them To Avoid Debt

LONDON, May 16, 2024 /PRNewswire/ -- Despite Britain exiting the recession, Brits are increasingly adopting prepaid cards to manage the ongoing cost of living crisis and avoid debt. A survey by Opinium, commissioned by leading online prepaid payment firm Recharge, shows that 1 in 5 Brits (11.4 million) use prepaid cards, marking a 118% increase since the crisis began.

Recharge, a B2C prepaid payments platform, offers over 16,000 digital vouchers and products, including e-gifts, gaming cards, and mobile top-ups.

34% of users (3.9 million) leverage prepaid cards to control finances, while 26% (3 million) use them to avoid debt. Over half (56%) of users are 18 to 34. The survey also highlights that men are 53% more likely to use prepaid cards than women (26% vs. 17%).

Key Trends:

Budget Control: Over 21% of Brits (11.4 million) now use prepaid cards, up 118% since the crisis.
Debt Dodging: 26% of users (3 million) aim to avoid debt.
Financial Planning: 34% of users (3.9 million) use cards to stay in control of finances.

Demographics and Fraud Prevention:

Men and Londoners Lead: Men are 53% more likely than women to use prepaid cards; 61% of Londoners use them, significantly higher than other regions.
Younger Users and Fraud Protection: Under 35s are 75% more likely than 35-54 year olds to use cards for financial protection. Men are 55% more likely than women to protect against fraud.

Günther Vogelpoel, CEO of Recharge, said, "The cost of living crisis has fundamentally altered spending habits, driving many Brits to seek alternative ways to ensure they are in control of their finances. Prepaid payment products are just one of the ways they are doing this. Our research highlights the importance of financial security and control in today's uncertain times. Recharge is all about putting the consumer in charge and providing them with the options to spend their way whilst continuing to meet their evolving needs."

This research, conducted by Opinium for Recharge, surveyed 2,000 UK adults. For more details, contact [email protected].

About Recharge:
Recharge, a B2C prepaid payments platform, offers over 16,000 digital vouchers and products, including e-gifts, gaming cards, and mobile top-ups. Operating in 180+ markets from Amsterdam, Recharge has raised over $70 million from investors like Prime Ventures and SmartFin. Visit company.recharge.com for more.

Photo - https://mma.prnewswire.com/media/2414724/Recharge.jpg