Pre-paid cards set to grow
(1 December 2009 – Europe) A poll conducted in four European countries has indicated the pre-paid card market; gift, general spending, travel, youth and remittance cards, is set to grow significantly over the next 12 months.
The group commissioned to conduct the research for First Data was Auriemma Consulting.
The group surveyed 500 people in each of the four countries selected and the results indicated that there is an increased awareness and interest in remittance pre-paid cards.
The countries involved in the study were Germany, Austria, Italy and the UK; the information collected from the respondents showed that Germany and Austria were still in an embryonic state of use, the UK slightly more advanced and Italy the most advanced of all of the nations.
Over the last 12 months, 66 percent of those surveyed in Italy had purchased a pre-paid card and a further 73 percent expected to purchase one over the next 12 months.
Of the UK respondents only 21 percent have purchased a prepaid card; yet three times as many plan to purchase one within the next year.
Around a quarter of all German and Austrian respondents have acquired a pre-paid card in the last 12 months, however nearly 50 percent were planning to purchase one at some stage within the next year.
Around two thirds of all people polled wanted to receive information about pre-paid offerings through online media and 46 percent would like to be able to purchase gift cards via the Web.
A major theme amongst respondents was the point that around 55 percent were using the pre-paid cards as a money management tool to control spending.
However, the survey indicated that the consumers with lower incomes and that do not currently a have bank account find no appeal in pre-paid cards.
The 57 percent of overall respondents that plan to purchase a pre-paid card over the next year, who earn over €40,000, describe themselves as creditworthy customers.
Distribution channels were also covered in the survey’s topics and three quarters of all British respondents said that they would prefer to purchase their card from a supermarket for all prepaid card types except travel.
While in Germany, banks were the preferred choice of place to purchase all cards except gift cards.
The post office, which currently dominates the market, was the preferred distribution channel for Italy.
Two thirds of consumer said that they would be willing to pay additional fees to personalise a gift cards with options such as colour scheme, picture of message.
Lisa Walker, head, pre-paid, First Data, international business, said that there is an important opportunity for financial institutions to use their compliance and regulatory expertise in this area and partner with retailers who offer value through their brand and as a load and distribution channel.
Whilst consumers are looking to the Internet to learn more about prepaid cards, online channels should currently only be regarded as a supplement to bricks and mortar outlets, Ms Walker added.
The group surveyed 500 people in each of the four countries selected and the results indicated that there is an increased awareness and interest in remittance pre-paid cards.
The countries involved in the study were Germany, Austria, Italy and the UK; the information collected from the respondents showed that Germany and Austria were still in an embryonic state of use, the UK slightly more advanced and Italy the most advanced of all of the nations.
Over the last 12 months, 66 percent of those surveyed in Italy had purchased a pre-paid card and a further 73 percent expected to purchase one over the next 12 months.
Of the UK respondents only 21 percent have purchased a prepaid card; yet three times as many plan to purchase one within the next year.
Around a quarter of all German and Austrian respondents have acquired a pre-paid card in the last 12 months, however nearly 50 percent were planning to purchase one at some stage within the next year.
Around two thirds of all people polled wanted to receive information about pre-paid offerings through online media and 46 percent would like to be able to purchase gift cards via the Web.
A major theme amongst respondents was the point that around 55 percent were using the pre-paid cards as a money management tool to control spending.
However, the survey indicated that the consumers with lower incomes and that do not currently a have bank account find no appeal in pre-paid cards.
The 57 percent of overall respondents that plan to purchase a pre-paid card over the next year, who earn over €40,000, describe themselves as creditworthy customers.
Distribution channels were also covered in the survey’s topics and three quarters of all British respondents said that they would prefer to purchase their card from a supermarket for all prepaid card types except travel.
While in Germany, banks were the preferred choice of place to purchase all cards except gift cards.
The post office, which currently dominates the market, was the preferred distribution channel for Italy.
Two thirds of consumer said that they would be willing to pay additional fees to personalise a gift cards with options such as colour scheme, picture of message.
Lisa Walker, head, pre-paid, First Data, international business, said that there is an important opportunity for financial institutions to use their compliance and regulatory expertise in this area and partner with retailers who offer value through their brand and as a load and distribution channel.
Whilst consumers are looking to the Internet to learn more about prepaid cards, online channels should currently only be regarded as a supplement to bricks and mortar outlets, Ms Walker added.
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