The idea of developing a prepaid card incentive program has been around for many years but now with new generations and demographics adopting prepaid cards in their personal life, the advantages of cards over cash are becoming easier to see.
A paper released in September, 2014 by the Federal Reserve Bank of Philadelphia titled Millennials with Money: A New Look at Who Uses GPR Prepaid Cards highlighting the increased uses of general-purpose reloadable (GPR) prepaid cards brought to light some of the main reasons for increased adoption of these financial tools as well as some of the advantages of them.
As consumers continue to become disenfranchised by the financial industry, companies and organizations need to find a way to distribute money to individuals who do not have bank accounts. Reloadable prepaid cards create a means to do this. There is now a large group of individuals who have taken to using reloadable prepaid cards as a substitute to direct deposits into traditional checking accounts.
As is expected, there is a direct relationship between a person’s age and usage of these cards, with younger people adopting the technology more rapidly. However, there is a large segment of middle and high income households that already employ a range of traditional banking services now adding reloadable prepaid cards to their wallet. Combining conventional banking services with prepaid cards creates a hybrid tool that is easy to manage and even easier to use.
- More than 73% of respondents stated that they expect their usage of prepaid cards to stay the same or increase in the coming year
- 53% of respondents that currently have a prepaid card agreed that owning a prepaid card is a good alternative to a checking account
- 42% of respondents indicated that their prepaid cards offered a significant advantage over cash
- 59% of respondents agreed that prepaid cards helped them “manage money better/ spend less”
- 62% of respondents stated that prepaid cards helped them avoid overdraft fees
As the demand for reloadable prepaid cards increase, so too does the demand for prepaid card incentive programs. It is becoming clear to companies that sales goals, employee engagement and loyalty are easier to reach when rewards are given on a reloadable prepaid card rather than with cash or merchandise. A 2013 survey of more than 1,400 people revealed that respondents preferred prepaid cards as rewards for a purchase.
To learn more about how JNR can create a custom prepaid card program for your organization and leverage the higher perceived value of card over cash, please call us today at 949.476.2788 or email firstname.lastname@example.org. You can also find additional information on our website.
Written by Stephanie Thomas
JNR Incorporated is a results-based, globally recognized leader that specializes in creating custom travel, meeting, event, prepaid card and merchandise programs that motivate, engage and inspire the employees, customers and channel members of our clients. We have over 30 years of experience working with Fortune 500 companies of many diverse industries. Our programs are tailored to fit the specific needs of marketing, sales, management and human resource professionals. The unique solutions we apply are measurable and proven to increase performance, loyalty and revenues.