As more financial institutions (FIs) begin to offer prepaid card products, it’s important to know more about how, and why, customers are making the decision to add a prepaid card to their wallet. Not long ago, Pew Health Group’s Financial Security Portfolio conducted a series of focus groups with prepaid card consumers to better understand their motivation for choosing and using these cards.
Here are a few ofPew’s key findingson prepaid cards:
- Most participants in the focus groups had a checking account and had incurred unanticipated fees on their account. They chose to get a prepaid card to avoid “hidden” fees.
- Many participants were looking for tools or resources to help them create a budget and control their spending. Prepaid cards allow them to limit their spending and avoid incurring unwanted debt.
