WASHINGTON—The prepaid card market is booming.
Consumers are expected to load $353.6 billion per year to them by 2020, according to Mercator Advisory Group. That would mark a 444% increase relative to 2012, notes WalletHub, which just released its 2017 Prepaid Card Report.
The report named the American Express/Walmart Bluebird card the best prepaid card in the country.
“Prepaid cards vary widely in terms of cost. The average offer includes 10 different fees, which can add up quickly if you choose the wrong card for your needs. Yet the best cards can be free if used wisely,” noted WalletHub.
Key report findings:
Choose Wisely: Each type of prepaid card user has at least one free option available, but choosing the wrong card can cost consumers up to $311 per year.
Big-Bank Savings: Prepaid cards from large banks are up to 82% less expensive than their small-bank counterparts.
Features Falling Short: Up to 49% of prepaid cards may not be suitable for common consumer needs, due to a lack of necessary features.
Few Celebrity Endorsers Survived: Prepaid cards founded or endorsed by celebrities – common in the market’s early days – have largely disappeared, reflecting the market’s maturation.
Mostly Falling Costs: “Alternative Check-Cashing Tool” is the only use case for which costs rose significantly relative to 2015 (22.20%). The cost of other use cases fell by an average of 8.52%.
Fees: Perhaps surprisingly, prepaid cards charge far fewer fees than their first cousin, checking accounts.