Individuals with little or no relationship to a financial institution find many of their financial needs can be met using reloadable prepaid cards, according to a recent survey.
It found that 96% of unbanked users said the prepaid cards were useful, and 94% would recommend a reloadable prepaid card to someone else. The Network Branded Prepaid Card Association, the branded prepaid cards' association and the Center for Financial Services Innovation, a nonprofit affiliate of ShoreBank Corp., conducted the survey.
Underbanked consumers use cash, money orders and a mix of check cashing, payday loans and other nontraditional arrangements to manage their finances on a day-to-day basis. These consumers cited a wide range of benefits as reasons for the high satisfaction rates with reloadable prepaid cards, including protection of funds if the card is lost or stolen, security and budget control.
The also listed value compared to alternatives such as check cashing locations, money orders or credit cards, and straightforward pricing.
“Reloadable prepaid cards give consumers with little or no access to credit or traditional financial services the ability to budget, spend and save like a mainstream consumer,” said Kirsten Trusko, NBPCA president and executive director.
“The survey results are encouraging and complement the growing body of industry research on why reloadable prepaid cards are becoming a reliable option for many underbanked consumers,” said Jennifer Tescher, director of CFSI.
–[email protected]