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Underbanked consumers, or individuals with limited access to financial services, cite a number of advantages that branded prepaid cards have over carrying cash and cashing checks, according to survey results released today by the Network Branded Prepaid Card Association, whose purpose is to promote the use of network-branded prepaid cards, and the Center For Financial Services Innovation, whose role is to bring banking services to the unbanked and underbanked. Branded prepaid cards process through the Visa Inc., MasterCard Worldwide, American Express Co. and Discover Financial Services networks and typically carry fees. Millions of brick-and-mortar stores and retailers' Web sites accept the cards along with their own, nonreloadable free proprietary prepaid cards. The poll "Underbanked Reloadable Prepaid Card Users" found that 51% of network-branded prepaid card users are women, and 49% are men. Sixty-eight percent are white, 16% are black and 7% are Hispanic, the survey found. Some 21% of prepaid card users work full-time, and 25% are married. Sixty-four percent of underbanked individuals had used network-branded prepaid cards to make online purchases, while 56% had paid with prepaid cards for everyday purchases, such as buying groceries. Another 52% paid bills with their prepaid cards, according to survey. The survey also found that 84% of underbanked consumers considered it a benefit that funds loaded onto network-branded cards were protected if the card were lost or stolen. Seventy-seven percent of those surveyed said the cards provide more security because cardholders do not need to carry as much cash. The Center For Financial Services Innovation, which is based in Chicago, and The Network Branded Prepaid Card Association in March hired Kupersmit Research of Denver to survey online 400 adults who earned less than $30,000 annually and who currently use reloadable prepaid cards. The Center For Financial Services Innovation says some 80 million to 100 million underbanked consumers live in the United States. The center defines underbanked individuals as those who rely on alternative payment forms, including prepaid cards, money orders, payday-loan stores and check-cashing services, to conduct financial transactions instead of using a bank account.
