Consumer Payment Card News

Prepaid Cards

A new survey shows that a large number of banked consumers are using prepaid cards as business accounts while the unbanked are using prepaid cards for everyday purchases. The latest “Prepaid Index” from PA-based prepaid specialist Ecount reveals that 40% of its banked cardholders use prepaid cards as business accounts while the remaining 60% of utilization is broken up between luxury purchases and daily purchases. The primary unbanked spending categories include grocery stores(11%); restaurants (11%); gas stations (7%); discount stores (3%) and fast food restaurants (3%). Ecount found that big ticket items abound in the banked spending. The average expense at electronics stores for banked consumers is more than $200, compared to $74 for unbanked consumers. Travel expenses account for more than 8% of banked spending, compared to less than 1% for the unbanked.

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