News

Coinstar study: Prepaid cards a money-management tool

November 18, 2003

BELLEVUE, Wash. -- The 2003 Coinstar National Currency Poll, which provides a bi-annual look at Americans and money, finds that consumers are seeking ways to better manage their finances and keep debt and spending in check, even during the holiday season.

Prepaid cards are among the budgeting tools many are using to better manage their household finances, in part, because the cards help put a cap on spending and avoid the accumulation of debt and credit card interest charges.

The sixth annual Coinstar survey shows that 32 percent of Americans queried report having used a prepaid card to make a purchase or transaction, which compared to other payment methods, including cash, is not far off from those who report using debit cards (45 percent).

Thirty-two percent say prepaid cards are also good to give as gifts, and 29 percent say they are especially good to give to kids. Asked what methods they would consider using to refill or replenish their prepaid cards' spending value, respondent said the following: 20 percent each for self-service kiosks, check and phone, 14 percent for online, and 12 percent for credit card.