CFSI Study on PrePaid Cardholder Spending Patterns

The Center for Financial Services Innovation and the Federal Reserve Banks of New York and Chicago released a new study entitled “Cardholder Use of General Spending Prepaid Cards: A Closer Look at the Market.”

The study gathered data from 4 card providers on approximately 2000 card holders. Some of the conclusions the researchers reached include:

1. Card holders spend almost all of the funds loaded on to a card each month
2. Point-of-Sale (POS) transactions significantly outnumber ATM transactions and card holders typically spend most of their money via POS
3. Fee structures and amounts, which had been quite variable, have become more consistent.
   

The paper also discusses which features (rewards programs, credit building, savings features) cardholders find most desirable.

The detailed statistical analysis combined with insightful analysis is a must read. To whet your appetite, I've borrowed a couple of interesting charts: