Moreover, the survey found that consumers have started employing prepaid cards in areas such as household budgeting and as replacements for their checking or debit accounts, particularly as payment alternatives for online purchases.
The report, published by consumer payments industry research services provider Mercator Advisory Group, indicates that private label retail cards were the most frequently used prepaid cards among the 45 percent of consumers making prepaid card purchases over the past 12 months. Also, the internet has become a critical sales channel for consumers looking to acquire a specific retailer’s gift card. The survey also shows that US retailer bankruptcies consumers have not discouraged consumers from applying for retailer-branded prepaid cards, but have made them more selective of the retailers they choose.
Also, the report has revealed that while gift-giving motivates most purchases, consumers have a wide variety of 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 or family member outside the household.
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