Prepaid cardholders are not just ready for mobile payments; they are already among the top mobile payments users in the U.S. according to the latest report by Packaged Facts.
Packaged Facts, a division of MarketResearch.com, publishes market reports on a wide variety of consumer market topics.
In its Prepaid and Gift Cards in the U.S., 4th Edition report, Packaged Facts revealed that prepaid cards are transforming rapidly into portals that connect cardholders to a wide range of financial services.
David Sprinkle, Research Director of Packaged Facts, said in a statement, “Thanks to the evolution of online and mobile technology, it’s apparent that card loyalty is not garnered from the card itself, but from the features that increasingly surround it, meaning the widening ecosystem through which the cardholder can engage easily with financial services products, services and educational tools.”
Packaged Facts estimated that prepaid card transaction value will hit $274 billion by the end of 2014, an 11% increase from the 2013 prepaid card transaction value.
The report also showed that direct deposit has a direct influence on cardholder retention as 60% of the prepaid card users said that the card they are using has a direct deposit feature.
The Prepaid and Gift Cards in the U.S., 4th Edition report also revealed that young adults within the age range of 18 to 34 have an average of 2.3 prepaid cards in their wallets, making them the key drivers behind the prepaid card revenue surge. These young adults also spend more than the average per month and their transaction volume is higher than average, the report showed.
It appears that the prepaid market’s mobile initiative is taking off due to its young and tech-savvy user.