Maybe Americans are not as fond of prepaid cards as the industry might have thought.
At least that’s according to a new report from Mercator Advisory Group, called “Consumers and Prepaid: Caution Ahead.” The report, published last week, shows that U.S. consumption of prepaid cards has dipped the first time in five years.
The report was based on an online survey of 3,011 U.S. adults conducted in June 2017 as part of the CustomerMonitor Survey Series, and showed that 56% of U.S. adults bought prepaid cards in the preceding months of 2017. That number was at 63% in 2016. According to the survey, retailer-specific cards were the most popular type of prepaid card, purchased by about 38% of U.S. adults. However, this figure is down as well, from 45% in 2016.
Karen Augustine, the author of the report, said in a statement last week:
The recent dip in prepaid buying … is a signal that issuers should beware and increase accessibility of their cards online and by mobile, given that prepaid cards lock in spend, foster loyalty, and generate significant incremental spend.
Read the full report here.