The pre-paid card market is set to see significant growth in the UK, Austria, Germany and Italy over the next 12 months as people look to control their spending, according to research from First Data.
The vendor, which commissioned Auriemma Consulting to poll over 500 people in each country, says there is increasing awareness of, and interest in, gift, general spending, travel, youth and remittance pre-paid cards.
Germany and Austria are considered to be embryonic pre-paid markets, the UK slightly more established and Italy the most advanced in Europe.
In Italy 66% of respondents have purchased a pre-paid card in the last 12 months and 73% expect to over the next year. In the UK only 21% have bought one in the last year but three times as many - 63% - expect to over the next 12 months.
In Germany and Austria around a quarter have acquired a pre-paid card in the last year, with nearly half planning to buy one in the next 12 months.
Of all respondents, 55% see benefit in using a pre-paid card to help control spending and manage their money. However, the survey shows the cards do not only appeal to those on lower incomes without bank accounts - 57% of those who expect to buy a pre-paid card within the next 12 months describe themselves as creditworthy consumers with incomes above EUR40,000.
There are differences between countries in the way customers want to buy pre-paid cards. In Germany, banks are the preferred purchase channel for all types except gift cards. In the UK, three quarters of respondents cite supermarkets as the preferred distribution channel for all except travel cards. In Italy, the majority of consumers surveyed would look to purchase pre-paid cards at a post office, which already dominates the market.
Around two thirds want to receive information about pre-paid offerings through online media and 46% would like to be able to purchase gift cards via the Web.
The survey also shows that over a third of people would be willing to pay additional fees in order to personalise a prepaid gift card with a customised colour scheme, picture or message, offering a potentially lucrative option for banks and retailers.
Lisa Walker, head, pre-paid, First Data, international business, says: "There is an important opportunity for financial institutions to use their compliance and regulatory expertise in this area and partner with retailers who offer value through their brand and as a load and distribution channel. Whilst consumers are looking to the Internet to learn more about prepaid cards, online channels should currently only be regarded as a supplement to bricks and mortar outlets."