PREPAID CARDS ARE MORE POPULAR AMONG
MILLENNIALS than any other generation, according to a
new survey conducted by TD Bank, Cherry Hill, N.J.
The bank polled more than 1,300 Americans—includ-
ing some who currently use reloadable prepaid cards and
some who don’t—to gain insight into consumers’ attitudes
toward and experiences with the cards. It found that one-
quarter of Americans ( 25 percent) either currently use or
have used a reloadable prepaid card in the past two to three
years, but among millennials (ages 18 to 34), this propor-
tion jumps to one in three ( 33 percent).
Additionally, the survey found that of millennials who
don’t currently use a reloadable prepaid card, 60 percent
would consider using one, compared with 49 percent of
the overall population. Among boomers (ages 55+), this
percentage drops to 34 percent.
“We know from our continued research that millennials favor debit cards and want to avoid overspending”, says
Tami Farrow, senior vice president and head of retail deposit payments. “Prepaid cards provide all the flexibility of
a debit card, but with the added control of only spending
what you load.”
Who’s using reloadable cards
In addition to millennials, consumers who have neither a
checking nor a savings account take advantage of reloadable prepaid cards significantly more than Americans in
general, according to the survey. Forty-two percent of
people in this population currently use or have recently
used a reloadable card.
The survey also found that people’s perceptions of how
the cards are used don’t align with how they are currently
being utilized. For those respondents who haven’t used a
reloadable prepaid card but would consider trying one, 59
percent said they’d likely use the card for online shopping,
48 percent said they’d use it for discretionary spending and
only 44 percent said they’d use it for day-to-day purchases.
However, among the respondents who currently use
or have recently used a reloadable prepaid card, the most
popular usage is day-to-day purchases (61 percent), followed by online shopping (56 percent) and discretionary
spending (52 percent).
Millennials Are More Likely to Use Prepaid Cards
than Any Other Age Group
A DECADE AGO, new banks were being formed at an average of 100 annually. However, within the last five years, that
rate has fallen to only three a year.
This statistic represents another blow to the future of
community banks, which already have been declining in
number since the Great Recession, according to a recent article in The Washington Post.
Fewer community banks could prove damaging to small-businesses, many of whom depend on local banks for loans
and other financial services.
The problem is that economic conditions combined with
low interest rates and increased regulatory compliance costs
have left a dismal environment for starting new banks, the
Most bank start-ups are community banks that launch
with assets of under $50 million. Some experts believe that
bank formations will bounce back as the economy improves,
although maybe not as robustly as in the past.
“With zero interest rates, opening a new bank doesn’t
work,” says Peter G. Fitzgerald, founder of Chain Bridge
Bank, MacLean, Va., who was quoted in the article. “It’s the
laws of humble arithmetic.”
Where Are the Local Bank Start-Ups?