Most Americans View Features of Reloadable Prepaid Cards as Good for Consumers

Convenience, Flexibility, and Fixed Spending Limit Seen as Top Benefits

21 March 2014

Economy

New York, NY - Many American adults believe the features of reloadable prepaid cards are beneficial to consumers, with their convenience, flexibility, and spending limits seen as the top benefits to consumers, according to a new poll of over 1,000 adults conducted by Ipsos Public Affairs on behalf of the American Bankers Association.

Benefits of Reloadable Prepaid Cards

The feature most likely to be seen as a good thing for consumers is prepaid cards' ability to be used anywhere the card's network brand (Visa, MasterCard, American Express, or Discover) is accepted. Seven in ten (70%) view this as a good thing, including a near majority (47%) who feel this is a very good thing.

Another feature related to convenience - providing customers with the flexibility to shop online where checks and cash are generally not accepted - is also seen as being beneficial by about seven in ten (68%).

U.S. adults also see the cards' fixed spending limit that help stop users from spending more than is on the card as being advantageous for consumers. Seven in ten (69%) say that it is a good thing that prepaid cards have a fixed spending limit based on how much money is loaded onto the card, which the user can reload as necessary.

Other benefits Americans indicated were beneficial to consumers include:

Offering customers another option to receive and use their money (65% good thing for consumers)
Being a good option as a "first" account for certain age groups, such as teenagers or college students (64%)
Being attractive to people who may not qualify for a traditional checking account due to previous difficulty in managing an account (62%)
Giving customers a way to convert cash, which can be lost or stolen, to a safer payment method (62%)
Allowing users to receive payroll and government benefits electronically, thereby avoiding the costs, inconvenience, and risks associated with cashing paper checks (59%)

Furthermore, out of all the features of reloadable prepaid cards outlined, less than one in ten Americans would consider any of these features a "bad thing for consumers."

In addition to identifying the many specific features of reloadable prepaid cards as good for consumers, Americans also view prepaid cards overall as beneficial for consumers. Nearly two-thirds of Americans (62%) believe prepaid cards are good for consumers. Moreover, that number is even higher among those who have experience with prepaid cards (have either bought or used a prepaid card) with four in five (80%) saying prepaid cards are good for consumers.

Feelings on Regulation

When it comes to the regulation of reloadable prepaid cards, a majority (70%) either feels that they should be subject to the same amount of regulation as credit cards (49%), or less regulation than credit cards (21%). Only one in ten (10%) say that there should be more regulation of prepaid cards than credit cards.

Prepaid Card Use

Four-in-ten U.S. adults (41%) have either used or bought a reloadable prepaid card from a bank or company like AMEX, Discover, MasterCard, or Visa. This includes:

One-in-five (22%) who say that they have used a reloadable prepaid card that was given to them as a gift;
Almost one in five (18%) who have personally bought and used a reloadable prepaid card;
And one in ten (10%) who have bought a prepaid card and given it to someone they know, like a spouse, child, parent, colleague or friend.

The most frequently mentioned reason for using or buying a reloadable prepaid card among those who have bought or used a card is as a gift generally or for the holidays (36%), followed by its convenience (11%), and to make online purchases (6%).

These are some of the findings of an Ipsos poll conducted November 21 - November 25, 2013. For the survey, a national sample of 1,004 adults aged 18 and older from Ipsos' U.S. online panel were interviewed online. Weighting was then employed to balance demographics and provide results intended to approximate the sample universe. A survey with an unweighted probability sample of 1,004 and a 100% response rate would have an estimated margin of error of +/- 3.1 percentage points 19 times out of 20 of what the results would have been had the entire adult population of adults in the United States had been polled. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

For more information on this news release please contact:

Rebecca Sizelove Associate Vice President Ipsos Public Affairs 212.584.9253 [email protected]

About Ipsos Public Affairs

Ipsos Public Affairs is a non-partisan, objective, survey-based research practice made up of seasoned professionals. We conduct strategic research initiatives for a diverse number of American and international organizations, based not only on public opinion research, but elite stakeholder, corporate, and media opinion research.

Ipsos has media partnerships with the most prestigious news organizations around the world. In the U.S., UK and internationally, Ipsos Public Affairs is the media polling supplier to Reuters News, the world's leading source of intelligent information for businesses and professionals.

Ipsos Public Affairs is a member of the Ipsos Group, a leading global survey-based market research company. We provide boutique-style customer service and work closely with our clients, while also undertaking global research.

To learn more, visit: www.ipsos-na.com

About Ipsos

Ipsos is an independent market research company controlled and managed by research professionals. Founded in France in 1975, Ipsos has grown into a worldwide research group with a strong presence in all key markets. Ipsos ranks third in the global research industry.

With offices in 86 countries, Ipsos delivers insightful expertise across six research specializations: advertising, customer loyalty, marketing, media, public affairs research, and survey management.

Ipsos researchers assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media and they measure public opinion around the globe.

Ipsos has been listed on the Paris Stock Exchange since 1999 and generated global revenues of e1,712,4 million (2 274 M$) in 2013.