Table of Contents
Scope and Themes
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- What you need to know
- Data sources
- Consumer survey data
- Advertising Creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Industry overview
- Industry highlights – the consumer
- The recession has hit the industry hard
- The un- and underbanked represent major potential
- The Credit CARD Act changes the landscape
- Teens and college students are an important market
- Closed-loop cards are giving way to open-loop cards
- Prepaid cards are for more than just shopping
Insights and Opportunities
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- Key points
- Cards are benefits to unbanked and underbanked
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- Figure 1: Households use of prepaid cards, by banking status, December 2009
- Community gift cards keep spending local
- Prepaid rebate cards are growing in popularity
- The teen market
Inspire Insights
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- Free Spending Teens are Back?
- Credit vs. Cash
- Next for the Residential Mortgage Market
Market Size and Forecast
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- Key points
- Use of prepaid and gift cards is trending up
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- Figure 2: Combined consumer use of prepaid and/or gift cards, 2007-09 (U.S. adults in millions)
- Closed-loop transactions and dollar volume
- Open-loop transactions and dollar volume
- Prepaid cards are increasingly popular
- And continued growth is expected
- Prepaid cards not yet heavily used for payments
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- Figure 3: Payment methods adopted*, by consumers, February 2010
- Why people have prepaid cards
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- Figure 4: Why people have prepaid cards, 2008
- Fewer people have prepaid cards, but more discard them
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- Figure 5: History of adoption and discarding, by payment method, 2008
- Gift cards
- Who uses gift cards?
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- Figure 6: Gift card use, by age (users in previous 90 days), March 2010
Competitive Context
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- Key points
- Key players
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- Figure 7: Global transaction market share
- Branded cards are preferred
- Gift cards are valuable incentives
- Green Dot’s new fee structure rewards repeated usage
- Bank fees are helping prepaid cards compete
Marketing Channels
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- Key points
- The parent/teen connection
- Using the internet
Market Drivers
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- Key points
- Un- and Underbanked
- The recession has hurt the industry
- Credit CARD Act
- Teens and college students
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- Figure 8: Projected growth of current children/teen/young adult market, 2004-14
- Cards used for other purposes will help drive market
Leading Companies
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- Key points
- H&R Block is the leading bank issuer
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- Figure 9: Leading prepaid card sellers based on purchase volume, 2008
- VISA is the leading card issuer – by far
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- Figure 10: Largest global prepaid card issuers, by market share of purchase volume, 2009
- NetSpend
- GreenDot
Innovation and Innovators
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- Key points
- RegaloCard
- Paragon Dynamix LLC
- Target offers mobile gift cards
- Partnering helps increase gift card usage
- Personalized egift cards fill a need
Advertising and Promotion
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- Key points
- Overview
- Reaching teens through their parents…and vice versa
- Different messages for different segments
- Email and direct mail ads
- Prepaid reloadable cards are the new way to manage money
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- Figure 11: Facecard Prepaid MasterCard email, March 2010
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- Figure 12: NetSpend VISA Prepaid card from MetaBank email, March 2010
- Figure 13: Readydebit VISA Prepaid card from MetaBank email, March 2010
- Gift card usage spurred by creative partnering
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- Figure 14: Discover direct mail piece, March 2010
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- Figure 15: TD Ameritrade/Apple gift card offer, March 2010
- VMS ads
- Alternative to a bank account
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- Figure 16: ICE Card – 2010
- Audience targeted by celebrity
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- Figure 17: RushCard – 2010
- Alternative to credit card
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- Figure 18: Green Dot Prepaid VISA – 2010
- Help with staying on budget
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- Figure 19: Vision Premier VISA—2010
- Using incentives to increase interest
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- Figure 20: Readycard Prepaid VISA
- Figure 21: RushCard VISA—2010
The Consumer
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- Key points
- How many cards are purchased and received
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- Figure 22: Consumers who purchased or received gift cards in the last 12 months, by gender, March 2010
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- Figure 23: Consumers who purchased or received gift cards in the last 12 months, by age, March 2010
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- Figure 24: Consumers who purchased or received gift cards in the last 12 months, by income, March 2010
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- Figure 25: Consumers who purchased or received gift cards in the last 12 months, by race/ethnicity, March 2010
- Where gift and prepaid cards are purchased
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- Figure 26: Where consumers purchased gift cards, by gender, March 2010
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- Figure 27: Where consumers purchased gift cards, by gender, March 2010
- Why cards are purchased and received
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- Figure 28: Occasions for which gift or prepaid cards have been purchased, by gender, March 2010
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- Figure 29: Occasions for which gift or prepaid cards have been received, by gender, March 2010
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- Figure 30: Occasions for which gift or prepaid cards have been purchased, by income, March 2010
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- Figure 31: Occasions for which gift or prepaid cards have been received, by age, March 2010
- Reasons for not buying cards
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- Figure 32: Reasons for not buying gift/prepaid cards, by age, March 2010
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- Figure 33: Reasons for not buying gift/prepaid cards, by race/ethnicity, March 2010
- Card preference
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- Figure 34: Preferred type of prepaid/gift card, by gender, March 2010
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- Figure 35: Preferred type of prepaid/gift card, by gender, March 2010
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- Figure 36: Preferred type of prepaid/gift card, by income, March 2010
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- Figure 37: Preferred type of prepaid/gift card, by race/ethnicity, March 2010
- Getting consumers to buy cards
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- Figure 38: Attractiveness of card features, by gender, March 2010
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- Figure 39: Attractiveness of card features, by age, March 2010
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- Figure 40: Attractiveness of card features, by income, March 2010
- Using cards to pay salaries
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- Figure 41: Receives salary by prepaid card, by age, March 2010
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- Figure 42: Receives salary by prepaid card, by income, March 2010
- Desire to be paid via prepaid card
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- Figure 43: Desire to be paid via prepaid card, March 2010
- Reasons for not wanting to be paid via prepaid card
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- Figure 44: Reasons for not wanting to have salary loaded on a prepaid card, March 2010
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- Figure 45: Reasons for not wanting to have salary loaded on a prepaid card, March 2010
- Inducing consumers to use a prepaid card
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- Figure 46: Likelihood of using a prepaid card vs. debit/credit cards, by gender, March 2010
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- Figure 47: Likelihood of using a prepaid card vs. debit/credit cards, by age, March 2010
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- Figure 48: Likelihood of using a prepaid card vs. debit/credit cards, by income, March 2010
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- Figure 49: Likelihood of using a prepaid card vs. debit/credit cards, by race/ethnicity, March 2010
Cluster Analysis
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- Key points
- Savers
- Who they are
- Characteristics
- Opportunity
- Simplistics
- Demographics
- Characteristics
- Opportunity
- Embellishers
- Demographics
- Characteristics
- Opportunity
- Cluster characteristics
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- Figure 50: Gift card clusters, March 2010
- Figure 51: Where consumers purchased gift cards, by gift card clusters, March 2010
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- Figure 52: Occasions for which gift cards have been purchased, by gift card clusters, March 2010
- Figure 53: Attractiveness of card features, by gift card clusters, March 2010
- Cluster demographics
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- Figure 54: Gift card clusters, by gender, March 2010
- Figure 55: Gift card clusters, by age group, March 2010
- Figure 56: Gift card clusters, by income group, March 2010
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- Figure 57: Gift card clusters, by race/ethnicity, March 2010
- Figure 58: Gift card clusters, by Hispanic origin, March 2010
- Cluster methodology
Appendix: Trade Associations
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