Prepaid cards are growing in usage and banks need to step up their game as prepaid card outlets in order to compete in the prepaid card market, according to a recent survey by SYNERGISTICS Research entitled, Marketing Prepaid Cards. Findings from the survey reveal that discount stores such as Walmart or Target are the top mentions, being indicated by more than six in ten general-purpose prepaid card users. More than four in ten say they typically purchase general-purpose prepaid cards from a supermarket or grocery store. About three in ten cite convenience stores/gas stations and credit card organizations. Slightly more than one-quarter say they typically purchase general-purpose prepaid cards at a bank or savings institution. More than one-fifth indicate purchasing from check-cashing facilities. One in six report department stores, while one-tenth mention Internet-based companies.
William H. McCracken, CEO of SYNERGISTICS, stated, “Prepaid cards are being used increasingly for a variety of purposes beyond being gift cards and can be purchased in many different locations. General-purpose prepaid cards, which can be used wherever major cards are accepted and are offered by many financial institutions, are obtained more widely at a number of locations other than banks or savings institutions. Discount stores are clearly a top outlet, and it is no secret that Walmart has made great inroads into the prepaid card market. Consumers are also more likely to be going to grocery stores, convenience stores, and credit card organizations than to banks to obtain general-purpose prepaid cards. Financial institutions will need either to establish channels of distribution through these types of retail outlets or more aggressively promote that they sell prepaid cards at their branches or via their websites.”
These are among the findings from SYNERGISTICS study, Marketing Prepaid Cards, featuring 1,005 national Internet interviews with consumers age 18 or older. This study examines the consumer perspective on prepaid cards. It examines current usage and demand, new services and features, pricing, and marketing strategies. Results will be presented to clients during a teleconference on May 18, 2015 at 2 p.m. (EST).