Controlling spending and giving just the right gift are two of the main benefits of prepaid cards, according to a survey of American consumers' payment preferences by Giftex Prepay.
The survey found that prepaid cards, including gift cards, do more than simply fulfil a gift-giving need. They also help gift-givers track and control their spending.
Nearly half of respondents (47.7%) said they are more likely to forget how much they spend when they use cash. And, although credit cards reduce that statistic to 25.3%, they also carry with them the burdens of interest rates and periodic reminders of purchases in the form of monthly statements that often decrease the emotional enjoyment of gift purchases.
The survey also found that more than half of the respondents were concerned with the problem of over-spending. This supports the positioning of prepaid cards as not only a gift option but also a solution consumer spending control.
A fond reminder?
Similarly, the survey found that gift card recipients also felt that they were better able to track the purchases they make with prepaid gift cards. At the same time, many felt that gift cards create a "memory trace" - a mental reminder of the reason they received the gift card and of the person who gave it to them.
The telephone survey, sponsored by Giftex Prepay, was part of a multi-part, multi-market research project conducted over the course of three months. Details of the study can be found in the company's journal, Global Prepay Intelligence, and on the company's web site.