The Key to Prepaid Debit Card Satisfaction and Loyalty: Forget Loads, Drive Usage
Report Summary
The Key to Prepaid Debit Card Satisfaction and Loyalty: Forget Loads, Drive Usage
Prepaid card users do not fit a preconceived mold, and different marketing campaigns will appeal to different types of prepaid card users
Boston, November 15, 2011 – A new report from Aite Group analyzes the demographics, behaviors, and attitudes of prepaid debit card users, and contrasts prepaid debit card users with users of other alternative financial services, including those that utilize check-cashing services and payday loans. It is the fourth in a series of reports based on a Q1 2011 Aite Group survey of 500 U.S. consumers that use alternative financial services.
Common perceptions about prepaid debit card users are misleading. It is simply not true, for example, that prepaid debit card users are “unbanked” or “underserved.” Many prepaid debit card users earn more than US$45,000 annually, have a college degree, and have both a checking account and credit card. The majority of these customers use prepaid cards for retail purchases, while only a small percentage use them to pay bills. Most also use the card for a single purpose; in fact, the differences between single-use and multiple-use card users provide some of the most compelling information for card marketers.
“To effectively support card usage via a segmentation approach, card marketers should identify single-use and multiple-use card users,” says Ron Shevlin, senior analyst with Aite Group and co-author of this report. “Different campaigns will appeal to these two groups. Single-use card users will respond well to incentives, whereas multiple-use card users will be attractive targets for replacing their checking accounts with prepaid cards.”
This 20-page Impact Note contains 21 figures and one table. Clients of Aite Group’s Retail Banking service can download the report.