Boston, MA, December 2, 2009 – A new report from Aite Group, LLC explores the issues preventing prepaid debit cards from gaining mainstream adoption among unbanked and underbanked consumers. Based on an Aite Group survey of 400 check cashing store users conducted in November and December of 2008, the report examines the characteristics of unbanked and underbanked consumers using prepaid debit cards, and explores potential opportunities for growing adoption of this payment type among this demographic.
While prepaid debit cards have gained greater adoption among unbanked and underbanked consumers, these products remain used by a minority of consumers in these segments. In order to understand the opportunities for prepaid debit cards among check cashing store customers, Aite Group developed a segment-based analysis of these groups. Based on surveyed customers' awareness and ownership of the product, as well as their expectations for adoption in the future, Aite Group divided the market into five segments: Adopters, Rejectors, Unreached Prospects, Purchase Intenders and Lapsed Owners. By examining the characteristics of and barriers to adoption for each segment, Aite Group has identified marketing strategies to appeal to each group of targeted end-users.
"Prepaid debit cards are in the initial stages of their product life cycle. As such, there is ample opportunity to grow product usage," says Gwenn Bézard, research director with Aite Group and author of this report. "Given the distinctiveness of the target consumer segments for this product, marketing programs should be specifically tailored to the needs of each segment."
This 13-page Impact Note contains six figures. Clients of Aite Group's Retail Banking service can download the report.