Survey: GPR Cards Popular with Millennials; Security Benefit Big among All Consumers (April 7, 2015)
New data suggest prepaid issuers would do well to target millennials and tout the security benefits of their cards, according to a new survey by TD Bank, the Cherry Hill, N.J.-based subsidiary of the Toronto-Dominion Bank. Millennials, consumers ages 18-34, lead the way in understanding and using GPR prepaid cards, the survey found. For example, one-quarter of all Americans either currently use or have used a reloadable prepaid card in the past three years, but the proportion jumps to one in three among millennials, What’s more, 60 percent of millennials who don’t currently use a reloadable prepaid card would consider using one, compared with 49 percent of the overall population.
The survey also found that, regardless of age, consumers’ perceptions of how they might use a GPR card didn’t necessarily align with how cards are typically being used. Of the respondents who haven’t used a reloadable prepaid card but would consider trying one, 59 percent said they’d likely use the card for online shopping, 48 percent for discretionary spending and 44 percent for day-to-day purchases. Among respondents who currently use or who have recently used a reloadable prepaid card, the most popular usage is day-to-day purchases (61 percent), followed by online shopping (56 percent) and discretionary spending (52 percent).
Security is a major reason why people are drawn to reloadable prepaid cards, according to the survey. Eighty-five percent of respondents currently using or have recently used a reloadable prepaid card reported feeling extremely or very secure about their finances and personal information when using the card. Among respondents who don’t currently use a reloadable prepaid card but would consider it, the most popular (53 percent) perceived benefit of the card is that it enables them to keep their personal information private and safely transact online. The study was conducted by global research company Vision Critical among a nationally representative sample of 1,301 Americans. Interviews were completed from Feb. 16-20, 2015.
See related stories: