There is potential for growing usage of prepaid cards in the small business market, according to a recent survey by SYNERGISTICS Research entitled, Opportunities in the Small Business Card Market. More than half of small business respondents were found to be aware of business prepaid cards. Close to half of those aware say they obtained this type of card in the past year, representing one-quarter of all small business respondents. In measuring potential, it was found that more than four in ten nonusers express interest in obtaining a business prepaid card. One in seven nonusers are “very” interested. More than six in ten of the business prepaid card prospects (those “very” or “somewhat” interested) would be willing to pay a one-time set-up fee of $50 for this type of card. Prospects were further asked if they would be willing to pay a monthly maintenance fee at various fee levels. Overall, about three-quarters of the prospects would pay a maintenance fee of at least $10 monthly, including more than four in ten who would pay $50 monthly.
Genie M. Driskill, COO of SYNERGISTICS, stated, “Prepaid cards are beginning to make their way into the small business market. These cards can be used in a variety of ways. They can be used to track and monitor employee expenses and spending. Also there are opportunities for promoting their usage as payroll cards. While current usage is narrow, particularly when compared to usage of debit and credit cards, there is an opportunity for growing interest in prepaid cards in the small business market. With increased marketing and communication, usage
of prepaid cards can be increased in the small business market. Along with debit and credit cards, prepaid cards can be marketed as part of the small business card product line providing small businesses with an array of card and payment alternatives.”
These are among the findings from SYNERGISTICS study, Opportunities in the Small Business Card Market, featuring online interviews with 604 small business owners/executives with annual sales of $50K-$5M. Industry categories include manufacturing, wholesale, retail, and services. This study examines small business usage of business credit, debit, and prepaid cards, as well as reaction to reward programs, value-added card services, and mobile innovations.