LANDSCAPE OF PREPAID This study, conducted by Ipsos MORI in March and June 2014, was a mixed method quantitative survey and ethnographic approach. Research was conducted in Belgium, Hungary, Netherlands, Poland, Spain and Turkey with those who are banked (those who own at least a current bank account and have access to electronic means of payment). A nationally representative sample of 400 respondents was surveyed in each country totalling 2400, out of which 1000 were prepaid card users (active or lapsed) and 1400 were prepaid card non-users. For the ethnography element, thirty-six households took part in day long ethnographic interviews. like paying by card like paying by cash 64 % 42 % € € € € Ownership of financial products More respondents in researched markets like to carry out their transactions by card Prepaid non users Prepaid users 68% 52% Prepaid users 68% Prepaid non users 49% Bank branch 51% Bank website 17% Retail store 16% Source of acquisition for prepaid cards Among prepaid users across all researched markets respondents are predominantly sourcing prepaid cards from banks Bank website 17% Online payment network website (e.g. PayPal, Ukash, paysafecard) 9% Retailer website 6% Acquisition of prepaid cards online Future consideration of prepaid cards amongst non prepaid users is low, which offers an opportunity for increased communication on the benefits of prepaid. In Hungary however, where open loop prepaid cards do not exist, the level of consideration for these cards is quite high. Prepaid users tend to use a larger portfolio of financial products versus non prepaid users Have a saving account Have a credit card Future consideration 24% Awareness 48% Awareness and consideration of prepaid cards Among prepaid non users All researched markets Prepaid non users Prepaid users Netherlands Spain Belgium Turkey Poland Hungary 6% 24% 12% 27% 18% 40% 31% 44% 46% 48% 48% 58%
Transcript
LANDSCAPE OF PREPAID
This study, conducted by Ipsos MORI in March and June 2014, was a mixed method quantitative survey and ethnographic approach. Research was conducted in Belgium, Hungary, Netherlands, Poland, Spain and Turkey with those who are banked (those who own at least a current bank account and have access to electronic means of payment). A nationally representative sample of 400 respondents was surveyed in each country totalling 2400, out of which 1000 were prepaid card users (active or lapsed) and 1400 were prepaid card non-users. For the ethnography element, thirty-six households took part in day long ethnographic interviews.
like paying by card
like paying by cash
64%
42%€ € € €
Ownership of financial products
More respondents in researched marketslike to carry out their transactions by card
Prepaid non users
Prepaid users 68%
52%
Prepaid users 68%
Prepaid non users 49%
Bank branch
51%Bank
website
17%Retail store
16%
Source of acquisition for prepaid cardsAmong prepaid users across all researched markets respondents are predominantly sourcing prepaid cards from banks
Future consideration of prepaid cards amongst non prepaid users is low, which offers an opportunity for increased communication on the benefits of prepaid. In Hungary however, where open loop prepaid cards do not exist, the level of consideration for these cards is quite high.
Prepaid users tend to use a larger portfolio of financial products versus non prepaid users
Have a saving accountHave a credit card
Future consideration 24%
Awareness 48%
Awareness and consideration of prepaid cards Among prepaid non users
All researched markets
Prepaid non usersPrepaid users
Netherlands
Spain
Belgium
Turkey
Poland
Hungary
6%
24%
12%
27%
18%
40%
31%
44%
46%
48%
48%
58%
THE IMPORTANCE OF CONTROL
This study, conducted by Ipsos MORI in March and June 2014, was a mixed method quantitative survey and ethnographic approach. Research was conducted in Belgium, Hungary, Netherlands, Poland, Spain and Turkey with those who are banked (those who own at least a current bank account and have access to electronic means of payment). A nationally representative sample of 400 respondents was surveyed in each country totalling 2400, out of which 1000 were prepaid card users (active or lapsed) and 1400 were prepaid card non-users. For the ethnography element, thirty-six households took part in day long ethnographic interviews.
Regularly check the balance on their current account
Prepaidusers
78%Prepaid
non users
75%
Allocate/assign money to theirdifferent needs and services
Prepaidusers
60%Prepaid
non users
59%
Like to keep trackof their finances
Prepaidusers
79%Prepaid
non users
81%
Both prepaid users and non users are similar to each other in terms of behaviour towards their finances. Both groups are looking for greater financial control
Avoid buyingthings on credit
Prepaidusers
61%Prepaid
non users
65%
Are aware of the credit limitassociated with their credit card
Prepaidusers
76%Prepaid
non users
81%
€€
€
ADVANTAGES OF PREPAID*
This study, conducted by Ipsos MORI in March and June 2014, was a mixed method quantitative survey and ethnographic approach. Research was conducted in Belgium, Hungary, Netherlands, Poland, Spain and Turkey with those who are banked (those who own at least a current bank account and have access to electronic means of payment). A nationally representative sample of 400 respondents was surveyed in each country totalling 2400, out of which 1000 were prepaid card users (active or lapsed) and 1400 were prepaid card non-users. For the ethnography element, thirty-six households took part in day long ethnographic interviews.
For Youth *For both prepaid cardusers and non users
When shopping online
When travelling abroad
of parents think that prepaid cards are a good way to teach their children
about money management
70%of parents think prepaid is a good tool to monitor how their children
are spending money
67%of parents think that prepaid
could help them better controltheir children’s spending
67%
think that prepaid offers an advantage of locking in exchange
rates when travelling aboard
64% considering prepaid as a cheaper
alternative to other payment methods when travelling abroad
Which leads to
64%think that prepaid offers
the advantage of more security when travelling abroad
66%
like shopping onlinebecause it is cheaper
58%think it is secure to use prepaid
cards to buy products online
70%
¥€
My daughter has a prepaid card for online shopping...Say I put 300 liras as the limit – even if there is 500 liras in the account, you can only use 300, thus it allows you to set the limit. I am happy because I am the one who sets the limit. (Feyza, Turkey)
CALL TO ARMS
This study, conducted by Ipsos MORI in March and June 2014, was a mixed method quantitative survey and ethnographic approach. Research was conducted in Belgium, Hungary, Netherlands, Poland, Spain and Turkey with those who are banked (those who own at least a current bank account and have access to electronic means of payment). A nationally representative sample of 400 respondents was surveyed in each country totalling 2400, out of which 1000 were prepaid card users (active or lapsed) and 1400 were prepaid card non-users. For the ethnography element, thirty-six households took part in day long ethnographic interviews.
AN UNTAPPED OPPORTUNITY
Maintaining responsible finances
1 2 3
4 5 6
Financial control and debt prevention
Appealing to women and children
Managing international travel
An added level of online security
A card you can trust
With 80% of consumers wanting to keep track of their finances, and regularly checking their balances, the control mechanisms that prepaid payment accounts offer could be of key importance to consumers.
73% of consumers felt that prepaid could prevent them going into debt, an important benefit in the current climate of mistrust in the traditional banking sector.
Women and children have very different financial needs, in managing the household budget and learning how to be responsible in the use of money, which creates an unmet need in current provision across the researched markets.
Consumers often seek reassurance about financial management during trips abroad, and 67% agreed that prepaid offers more security when making cross-border payments.
With online shopping becoming ever more popular, prepaid offers a secure and convenient payment method for consumers, allowing them to shop safely online.
Prepaid users were shown to be more financially savvy, demonstrating that they have found a way of successfully combining prepaid with their current payment card portfolio.
