Prepaid cardholders expected to lead mobile payment charge

by: Konrad Christensen

Prepaid cardholders are currently among the top mobile payments users in the U.S. With that in mind, the fact that prepaid card transaction value is expected to total $274 billion by the end of 2014 may bode well for mobile payment adoption.

A new study indicates U.S. consumers who use prepaid cards are more likely to adopt mobile payments than non-prepaid card users. The study from Packaged Facts, “Prepaid and Gift Cards in the U.S., 4th Edition,” highlights a growing need for developers to enhance their mobile platforms for the prepaid card industry.

“Thanks to the evolution of online and mobile technology, it’s apparent that card loyalty is not garnered from the card itself, but from the features that increasingly surround it, meaning the widening ecosystem through which the cardholder can engage easily with financial services products, services and educational tools,” David Sprinkle, research director for Packaged Facts, said in a press release.

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