MAYNARD, Mass.—Young adults have traditionally been the primary market for purchasing prepaid cards, but there's a relatively serious decline underway in the number of 25-34 year-olds purchasing the cards, a new report reveals.
In 2016, 81% of 25-34 year-olds had bought a prepaid card in the last year. Today, 66% of 25-34 year-olds report they have bought a prepaid card in the last year, according to a Mercator Advisory Group study.
Similar declines are prevalent among Gen Z—18-24 year-olds—where today 68% have purchased a prepaid card down from a similar 2016 high of 77%.
“Age isn't the only characteristic in prepaid's decline, high-income earners are also buying in fewer numbers, Payments Journal explained in its analysis.