According to the Cardbeat research, carried out by Auriemma Consulting Group, 42 percent of respondents have claimed they have received an open-loop gift card in 2010 compared to 26 percent in 2005.
Prepaid cards directed to teenagers and young adults were shown to represent an area of potential development for the prepaid sector, since one third of the parents surveyed have shown receptivity to the concept. Thus, 64 percent of respondent parents encouraged the idea of their child having a card to use in an emergency and another 59 percent felt the card offered greater security for their child than carrying cash.
Nevertheless, the popularity soar seen by gift cards in recent years occurs a time when prepaid issuers are trying to distance themselves from such cards, the same report points out.
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