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European Consumers Turn From Cash To Prepaid For
Financial Control
New research reveals consumer demand for more innovation in prepaid programmes
Waterloo, Belgium, 9 May 2008 - Nearly three quarters of European consumers (71%)
appreciate the financial control a prepaid payment card offers, when presented with the
potential benefits compared to cash and cheques, and recognise that it would stop them
from overspending, according to new independent research commissioned by
MasterCard. More than half of European consumers (54%) also value prepaid cards as a
budgeting tool which would allow them to set money aside for specific purposes, from
weekly grocery shopping to holiday expenses.
Speaking at the second annual MasterCard Europe Prepaid Conference in Cannes this
week, Chris Reddish, Global Product Head of Prepaid Europe, MasterCard, said:
“In a climate of growing global concern about indebtedness, consumers are seeking
transparent and user-friendly financial tools that can help them with budgeting for both
everyday and special occasions. This research confirms that consumers are increasingly
willing to turn to prepaid cards as a means of responsible spending and financial
planning.”
The study, conducted for MasterCard by ase Market Intelligence in April 2008 via online
interviews with 1,012 consumers in the UK, France, Italy, Germany and Poland, also
shows that consumers are now demanding more from their prepaid cards than just the
ability to conduct a traditional transaction.
Two thirds (66%) of those surveyed were receptive to the idea of a loyalty scheme that
entitled them to discounts at participating retailers, while more than half (51%) were keen
to see ‘Tap & Go™’ functionality added to prepaid cards, allowing them to simply touch
the card on a special reader to make a payment more quickly and conveniently. A further
46% said they would value a prepaid card that allowed them to make a charitable
donation with every purchase.
Reddish continued:
“The resear