Most Parents Using Prepaid Cards and P2P Apps
More than half of parents use prepaid cards or peer-to-peer money transfer apps, according to a new study from Auriemma Consulting Group. They surveyed a random group of U.S. adults and found that 50% of parents used prepaid cards and 56% used P2P apps. 62% of parents said they have used both.
Parents see prepaid cards and payment apps as a more secure way to leave money for a babysitter, pay a landscaper to mow their lawn, or give kids money to spend while they are away. Many new products on the market are targeted specifically for parents and children, like the Current, a debit card for kids that receive allowances.
ACG’s study found 36% of consumers have used a reloadable prepaid card in the past, and 16% currently use one. Of those who have a reloadable card, 70% said they use it at least once a week.
Three out of five P2P users said they linked a bank debit card to their accounts, while 40% said they linked a credit card. Conversely, 44% of prepaid cardholders said that not having to link their cards to a bank account was one of the biggest selling features. 33% said prepaid cards were the most secure method of payment, which was found to be important for both parents and non-parents.
36% of survey participants who did not use prepaid cards said they simply did not need one, and 7% said they did not want to pay a fee for a prepaid card. However, those who had a prepaid card had positive experiences. 82% said they were satisfied with the product, and 83% liked their card’s features.