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Prepaid card program managers should not focus just on unbanked and younger consumers because the market for such products is expanding, according to a Javelin Strategy & Research report "Prepaid Product Evolution: Align Processor Relationship With Strategic Goals." "There is a broader array of consumers that is aware of prepaid products and is actually using them in the online and offline world," Bruce Cundiff, Javelin director of payments research and consulting and the report's author, tells CardLine. "Issuers can't just look at prepaid as a niche product because there is an opportunity for a multiproduct relationship with consumers. Issuers are not just going to hit that small target of consumers." Contrary to what some market observers believe, Javelin data indicate that prepaid card use is spread evenly among most income groups. Middle-income consumers, characterized as those earning $50,000 to $74,000 annually, use prepaid products the most. Additionally, prepaid use is spread among all age groups, according to the report. Broader prepaid card issuance can reach a multitude of consumers in many ways, such as by offering reloadable cards, gift cards, payroll cards and health savings accounts, the report says. Moreover, the report suggests, prepaid program managers should look for processors that can support the expanding prepaid consumer market.
