Youth Card Phenomenon

Thursday, 12 August 2010

Great Opportunity in Youth Sector

A new syndicated market research report published by Auriemma Consulting Group (ACG) suggests that prepaid cards carrying network brands (like Visa or MasterCard) are gaining in popularity in the US – but primarily as gift cards.

The Cardbeat® survey found that 42 percent of respondents said that they had received a network-branded (or open-loop) gift card, compared with 67 percent who had received a store-specified card. This is compared with only 26% of shoppers having received an open-loop card when the study was run back in 2005.

Another product variation of the general-purpose reloadable card is directed at teens and young adults, and the study suggests that this market may be poised for growth, with parents in the survey relatively receptive to the concept. About one-third were quite positive, and another third were willing to consider the product.

Cardbeat is ACG’s syndicated market research study of credit card holders, conducted monthly in the U.S. and quarterly in the U.K

A new wave of teen prepaid cards have recently hit the US market, with the industry obviously viewing this demographic as one on which to focus. Generally teen cards are positioned to parents and teens offering a powerful tool to encourage financial responsibility. Various offerings also state convenience, parental control and safety as added benefits.

Source : Global Prepaid Exchange