Rockville, Md. - American prepaid card users are the leading users of mobile payments. According to Prepaid and Gift Cards in the U.S., 4th Edition, a recent report by market research publisher Packaged Facts, smartphone penetration is actually higher among groups underrepresented by traditional banking products and services.
Roughly 89% of consumers from underbanked households have a smartphone; and even two-thirds (64%) of consumers from unbanked households have one. In addition, younger adults (age 18-34) do more card shopping and have a wider variety of cards in their wallet. Based on survey results, Packaged Facts estimates that prepaid cardholders age 18-34 have an average of 2.3 prepaid cards in their wallets.
In addition, while direct deposit clearly influences cardholder retention, it is not enough to keep these cardholders engaged. Survey results indicate that mobile-forward platforms with Millennial-era options such as P2P and bill payment will invariably entice 18-34s to linger longer.
"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," said Packaged Facts research director David Sprinkle.