Prepaid gains more love from Canadians
95% satisfaction rate in 2016
Reloadable prepaid cards are a hit with Canadian consumers, with 95% of them saying they are satisfied with the products in 2016, reports Banking Technology‘s sister publication Paybefore.
The figure represents an increase of 22 percentage points from 2015, and stands as the highest satisfaction rate for all payment tools, according to the second annual survey from the Canadian Prepaid Providers Organisation (CPPO).
The trade group, which based its new findings on a survey of 1,006 consumers, said that satisfaction with single-use prepaid cards increased by 14%, reaching 89% in 2016. Part of that satisfaction no doubt comes from happy parents, as the survey report also said that “60% of consumers find it appealing to use prepaid cards to help their children manage their money [and] 47% of those with kids under 18 at home would consider doing this”.
The “How Canadians Pay Today” survey includes signals that might trouble some bank executives: 33% of respondents said they do not want to use “traditional banks because alternative providers and new tools are cheaper and more convenient”. Additionally, 26% prefer to use such digital payment tools as Apple Pay, which last year expanded its Canadian presence. Already, 59% of Canadian consumers have used such products; of those, 70% cite convenience as the main reason for doing so.
The survey also found that:
- More consumers are seeking out American Express, Mastercard and Visa prepaid cards compared to 2015.
- An American Express, Mastercard and Visa prepaid card user is more likely to be male, between the ages of 18 and 44, and a user of an alternative payment method than other consumers.
- 66% are concerned about the security of their credit and debit cards for online purchases. But only 28% expressed similar concerns about prepaid cards.
“Canada has both a highly banked population and many consumers with a strong willingness to try new financial services products,” says David Eason, CPPO co-founder and chairman of the board. “This year’s survey revealed that younger Canadians in particular are adopting emerging payment tools that are more convenient and secure.”
