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Millennials and Prepaid Cards: A Case Study

It might not be common knowledge but millennials now make up a massive part of  the modern workforce. However, here’s another interesting fact about millennials not many people may know about: they love and are always on the lookout for the best prepaid cards they can use. 

In the United States alone, a staggering 29 million millennials have their pays loaded onto their prepaid cards. Taking that fact into account, there is no denying the clout and popularity of the best prepaid cards is no longer up for debate.

B&C Media conducted a study to look into the use of prepaid cards among today’s millennials. The results provided a clear insight into their relationship with prepaid cards—their views on this innovative financial instrument, how and why they use them, their overall satisfaction with the card, and many more.

Overall, the survey indicated that regardless of how and where they use it, millennials are very satisfied with their prepaid cards. And as expected, they also report having a very positive and favourable experience when it comes to using the prepaid cards for purchase as well as other transactions.

Below are other interesting nuggets discovered from the survey conducted on the relationship of millennial and their prepaid cards:

Prepaid Card Usage

Majority of those who participated used ATM and cash back at the point-of-sale access from their prepaid cards.

  • Close to 50 percent use their prepaid cards to withdraw money at least thrice (or more) each month.
  • A whopping 98 percent of the respondents use their prepaid cards to make purchases.
  • 73 percent of participants use their prepaid cards to withdraw money from the ATM.
  • 72 percent of the respondents get cash back at the register.

Prepaid Card Overall Satisfaction

  • A massive 83 percent of respondents report happiness and satisfaction as far as using their prepaid cards go.
  • Over 60 percent of the participants maintain their prepaid card is more useful than they first perceived it to be.
  • At least 23 percent of prepaid card users report prepaid cards totally met their expectations and did not disappoint in any way.

Prepaid Cards versus Credit Cards

  • 47 percent of the survey respondents preferred not to get a credit card so they won’t spend more than they are supposed to or can afford to.
  • Of the 64 percent who are without credit cards, most chose not to have one and not because they are not qualified.
  • Another 42 percent of the respondents revealed they chose not to get a credit card to avoid accumulating mounting debts.

Prepaid Cards versus Other Bank Accounts

  • 33 percent of the respondents revealed they opted to get prepaid cards over checking accounts to avoid dealing with overdraft fees.
  • At least 20 percent of the survey participants don’t have checking accounts and were hesitant about having to maintain a minimum balance in their accounts.

Prepaid Card Fees

  • At least 80 percent of the survey respondents report satisfaction in terms of the prepaid card fees they are paying.
  • 30 percent of the survey participants were actually surprised prepaid card fees are actually lower than they expect.
  • 53 percent of the survey participants report their expectations are met in terms of prepaid card fees.

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