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Data for this episode of Truth In Data provided by Mercator Advisory Group’s report – Top 10 General Purpose Reloadable Prepaid Debit Cards in the U.S. Chosen by GPR Cardholders in 2018
- GPR open-loop prepaid cards grew 12% by $ loaded & have a CAGR of 9% but the churn rate…
- The churn rate for GPR cards is at least 70%
- At 70% churn, its hard to recoup the cost of the plastic let alone marketing $
- According to Mercator, 31% of GPR cardholders don’t know they can add dollars after the first load
- 47% of GPR cardholders are aware they can add more $, but chose not to
- Average retention of a GPR prepaid card is between 6-12 months, which has average profitability for issuers
- Roughly 70-80% of new cardholders will not load or reload their card, will let the card become dormant, or will close the card within the first 90 days
About this report
A new research report titled Top 10 General Purpose Reloadable Prepaid Debit Cards in the U.S. Chosen by GPR Cardholders in 2018, has been released by Mercator Advisory Group which provides a deep dive into the features, functionality, and pricing of each of the Top 10 cards. This report will be especially useful to program managers and prepaid card issuers as a means of evaluating their programs against their competitors’ programs. GPR cards will receive increased scrutiny regarding their fees and disclosures when pending prepaid card regulation by the Consumer Financial Protection Bureau takes effect April 1, 2019.
“Providers of GPR prepaid debit cards should be evaluating their programs on a regular basis to be sure the program’s offerings is competitive and attracting the type of GPR cardholder that is beneficial to their portfolio,” comments C. Sue Brown, Director of Mercator Advisory Group’s Prepaid Advisory Service and author of the report. “What was considered new and innovative from a feature/functionality perspective five years ago is now an expected minimum basic offering on most cards. A few new trends in features/functionality as well as pricing have emerged, so program managers need to be make sure their portfolios align with them.”