PHILADELPHIA—Add Millennials to the growing group of consumers who like prepaid cards.
A new report from the Federal Reserve Bank of Philadelphia indicates that increasingly Millennials like the prepaid option.
The report shows that Millennial use of prepaid is not being driven by a lack of access to credit and debit cards. In fact, according to the report, 83% of Millennial prepaid users also have debit cards. Upper-income Millennials are showing a great deal of interest, with 60% of those with household incomes above $100,000 using prepaid.
The report is another sign that the face of the prepaid user is changing. Once considered a card primarily for the low-income and unbanked populations, recent studies have also shown that affluent Americans like prepaid as a budgeting tool and as a means to reduce fraud exposure.
Experts surmised that one reason prepaid is appealing Millennials is because the demographic does not like to visit branches to make deposits. Many prepaid cards allow reloading via a mobile device or PC.