$200 Billion Spent on Prepaid Cards in 2014
Prepaid cards saw a big spike after the economy took a downturn a few years ago, and now we are starting to see the effects of that spike. By the end of 2014, the total money spent on prepaid cards in the U.S. will reach $200 billion.
The current stats on prepaid cards represent debit cards, payroll cards, open and closed-loop gift cards, and open and closed-loop consumer incentive cards. These are offered through stores, banks and credit card companies.
Some of the biggest growth in recent years has come from incentive cards. For example, Nissan offers a $50 prepaid card for people who take their vehicles out for a test drive.
Payroll cards have also grown since they are convenient for employers and employees alike. The only downside is the fees that come with them.
Madeline Aufseeser, a senior analyst at the financial technology consultancy Aité Group, said, “It has become a mass market product. Twenty-three percent of the population in the U.S. hold a prepaid card.”
Whether you use prepaid cards to budget your money or give away as gifts, chances are you have played a part in this ever-growing market.