Consumer Prepaid Cards: Growing Beyond the Retail Core

리서치사	Mercator Advisory Group, Inc.
발행일	2009년 09월	상품코드	100016
페이지 정보	38 pages, 17 exhibits
가격	US $ 2,950 ￦ 3,514,900 PDF by E-mail (Single User License)

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Abstract

Second of Four Consumer Reports from Mercator Advisory Group' s Primary Data Series

Boston, MA - September 10, 2009 - - The prepaid card industry continues to grow at a phenomenal rate. New card implementations are constantly being added by program sponsors and managers and strong distribution channels such as prepaid malls and online vendors are giving consumers more access to new and old prepaid products. However, consumer use of prepaid products is adding to both the complexity and strong growth of the product, with consumers finding new uses for prepaid cards such as household budgeting and as a checking account/debit replacement.

Based on primary consumer surveys the Consumer Prepaid Cards: Growing Beyond the Retail Core report illustrates how consumer behaviors and preferences are contributing to the growth and intricacy of prepaid, and why this trend is likely to continue. This is the second Primary Consumer Payments report being offered as part of Mercator Advisory Group' s newly launched Primary Data Series (PDS). This new offering by Mercator Advisory Group provides access to a library of valuable resources that combine both relevant payments and banking data with experiential analysis focused on today' s most critical and strategic issues.

"The consumer viewpoints documented in this survey confirm the reality that for cardholders as well as issuers, prepaid means many things to many people." Ken Paterson, VP for Research Operations at Mercator Advisory Group and the primary author of the report comments. "Some may be firmly entrenched in using a single familiar category like closed loop prepaid cards purchased in-store. Others may have discovered prepaid as a DDA/debit alternative or a payment alternative for online purchases. And others with no experience may yet discover the category as a merchant issues a rebate or credit via a prepaid card. The consumer prepaid marketplace has different meanings for all, and therefore no shortage of growth opportunities."

Highlighting consumers' evolving use of gift/prepaid cards, this report is based on a national sample of 1,012 online consumer survey panel survey responses completed between May 28 and June 4, 2009. The report outlines consumer patterns of card usage and purchase patterns critical for issuers, program managers, and program sponsors in this dynamic payment segment.

Highlights of the report include the following:

As a broad category, private label retail cards (closed loop) are the most commonly and frequently used prepaid cards among the 45% of consumers making prepaid card purchases in the last year.
While consumers most often say they buy a specific retailer' s gift card in that retailer' s store, distribution through other retailer locations in "prepaid malls" and online are critical sales channels. Consumers often have a specific card and purchase location in mind, while at other times may be more prone to browse.
In spite of last year' s concern about retailer bankruptcies and how they might affect prepaid card sales, consumers indicate they have become more selective of the retailers they choose rather than broadly avoiding these cards. However, general purpose network-branded cards did reap some benefits.
While gift-giving motivates most purchases, consumers have many purchase motivations. In particular, nearly one in five card purchasers use cards to help them manage the household budget, or the budget of a friend/family member outside the household.
Consumer experience with reload capabilities of general purpose cards is relatively low, but closed loop reload experience, such as at coffee vendors, is more widespread.

TABLE OF FIGURES

Introduction

Survey Methodology and Sample Profile

Data Collection Approach
Sample Profile

I. Setting A Consumer Baseline

The Purchase Side
More Than Gifts
The Receiving Side
Prepaid Usage Outlook

II. Gift Card Shopping Behavior: Complex In Its Own Right

Channel Use
How Merchant Bankruptcies Factor In To Card Shopping

III. Consumers Finds New Prepaid Uses

Household Budgeting
GP Reloading Behavior: Half Empty/ Half Full
But Don' t Forget Retail/PL Card Reload
The Giving Part Of Gifting

IV Strategic Implications

Appendix: Prepaid Topic Questionnaire Module

TABLE OF FIGURES

Figure 1: PL Retail Prepaid Leads, With Room For All To Grow
Figure 2: PL Retail Customers Are The Most Frequent Purchasers
Figure 3: Among Purchasers, The PL Retail Category Has The Largest Loads
Figure 4: After Gifts, A Multiplicity Of Uses
Figure 5: Prepaid' s Strong Appeal For Gifting
Figure 6: Nearly One In Five Receive Funds On Cards
Figure 7: 2009 Growth Comes From Younger And Budget Users
Figure 8: PL Retail Buyers Show Loyalty To The Retail Channel,GP & Online Service Buyers Prefer "Malls"
Figure 9: Purchasers In 2009 May Concentrate On Fewer Channels
Figure 10: Most Think They Know Which Gift Card They Want, But Browsing Is Common
Figure 11: Bankruptcy Risk Makes Buyers Cautious, But Most Stay With PL Retail Cards
Figure 12: A Mix Of Single Use And Reloadable Cards Are Used For Budgeting
Figure 13: Experience With GP Reload Is Low Among All Consumers
Figure 14: Reload Has Room To Grow Even Among Past Prepaid Purchasers
Figure 15: Most GP Reloads Occur In-Store
Figure 16: Of The 22% With Retail/PL Reload Experience, Most Reloads Occur In-Store
Figure 17: Delivery In Person, Or By Mail With Reservations