News

Coinstar poll: Teens use self-service kiosks for prepaid services

August 11, 2004

BELLEVUE, Wash. - The Second annual Coinstar Teen Poll found that nearly half of teens surveyed are unaware of the airtime minutes they are allowed under their post- paid cellular plans, making them more susceptible to overage charges - a possible reason why three times as many teens as last year, based on Coinstar's 2003 teen survey, have turned to prepaid wireless options.

Parents and Teens Turn to Prepaid Wireless to Keep Communication Lines Open

According to the Coinstar Teen Poll, 29 percent of young people have their own cell phone; 12 percent share a cell phone with a sibling or parent; and 59 percent of teens do not have a cell phone at all.

When looking at postpaid verses prepaid wireless plans, 52 percent of teens with cellular phones are on a post-paid plan, while 39 percent are on a "pay as you go" prepaid plan- that is more than three times the 12 percent of teens that reported using prepaid wireless according to last year's Coinstar teen survey. In addition, among those who said they are currently using prepaid wireless, more than one-third (35 percent) said they were previously on a post-paid plan while 12 percent of current post-paid cellular users said they or their parents have considered switching over to prepaid wireless.

The Coinstar Teen Poll also found that while only 10 percent of teens admit they regularly exceed monthly minutes on their post-paid plan, 46 percent said they had no idea how many monthly evening/weekend minutes they had available. Thirty-six percent (36%) said they did not know how many daytime minutes they were allowed each month.
While the majority (65 percent) of parents are still the primary decision- maker when it comes to choosing a post-paid verses a prepaid wireless plan for their kids, 21 percent of teens said they decide on the type of cell phone or wireless plan they have. About as many teens say they also pay for their cell phone (23 percent) and their monthly cell phone expenses (25 percent).

Among those teens that have prepaid wireless, most (46 percent) reload their minutes monthly, others every other month (22 percent) or weekly (13 percent). Teens report reloading their wireless minutes a number of ways, from over the phone (34 percent), to a wireless provider's retail location (22 percent), to online (18 percent), to a self-service kiosk that offers prepaid wireless replenishment services (8 percent). According to teen prepaid wireless users, the average reload amount is $30.

"Pay as You Go" Cash Cards Create New Flexibility For Teens

Overall, 54 percent of teens said they would be interested in having or using a prepaid cash card (also known as a prepaid debit card) as an alternate form of payment, while 18 percent have already had an experience using one. Sixty-three percent (63%) of teens affirm their parents would probably support them having a prepaid cash card for not only the added spending flexibility, but also to help them better control and manage their spending.

According to teens themselves, 74 percent agree prepaid cash cards are a good idea to help provide them with greater spending flexibility while 67 percent said a prepaid cash card would help them better manage their money and keep them from over- spending. Thirty-five percent (35%) of teens said having a prepaid cash card would also make them look cooler in front of their friends.

Teens who are current users of prepaid cash cards are split on the convenience of traditional reloading methods. While 47 percent of teen prepaid cash card users said reloading the value of a prepaid cash card would be inconvenient, 49 percent disagreed saying it would not be an inconvenience to have to reload a prepaid cash card. The same was true for tracking a prepaid card balance - 51 percent said they thought it would be challenging while 48 percent disagreed.

"While teens are important consumers with their own spending needs, parents have a need to keep the family budget in check," said Gretchen Marks, vice president of marketing, Coinstar Inc. "Prepaid cash cards, conveniently purchased and reloaded in a growing number of supermarkets and drug stores across the country, are a great solution because they give parents and kids the best of both worlds - providing teens with greater financial independence; while allowing both parents and teens better control over how much is spent. Use of prepaid plans for wireless offers teens and families the same flexibility and spending control."