Germans are increasingly turning to prepaid cards and adjusting their spending habits to manage the ongoing cost of living crisis and to avoid debt, according to a new survey conducted by research firm Opinium, commissioned by leading online prepaid payment firm Recharge.
The survey of 2,000 German adults (18+) reveals that 26% (1 in 4) of Germans (18.4 million) use prepaid cards, a 62% increase since the cost of living crisis began. 32% of users (5.9 million) said they use prepaid cards to stay in control of their finances, while 27% (4.9 million) use them to avoid going into debt.
Almost half (45%) of 18-34 year olds use prepaid cards. Additionally, the survey revealed that men are 11% more likely to use prepaid cards compared to women (28% compared to 25% respectively).
Summary of the key trends:
- Fear of debt driving Germans to use prepaid cards: 26% of Germans (18.4 million) now use prepaid cards, reflecting a 62% increase since the cost of living crisis began.
- Debt Avoidance: 27% of prepaid card users (4.9 million) use them to avoid going into debt.
- Financial Control: 32% of prepaid card users (5.9 million) aim to stay in control of their finances through prepaid cards.
- Men and Berliners Lead German Surge in Prepaid Card Usage:
- Demographics: German men (28%) are 12% more likely to use prepaid cards than women (25%); Berliners (38%) are 5.56% more likely to use prepaid cards than any other German region (next is 36% - Saarland).
- German Under 35s and Men use Prepaid Cards to Fight Fraud:
- Online Protection: German 18 to 34s using prepaid cards (21%) are 19% more likely to use prepaid cards for financial information protection than 35-54 year olds using them (17%). German men using prepaid cards (28%) are 33% more likely than female users (20%) to use prepaid cards to protect against fraud.
Günther Vogelpoel, CEO of Recharge, said: "The cost of living crisis has changed spending habits, driving Germans to seek alternative ways to ensure they are in control of their spending. Prepaid payment products are just one of the ways they are doing this. Our research highlights the importance of financial security and control. Recharge is all about putting the consumer in charge and providing them with the options to spend their way whilst continuing to meet their evolving needs."
This Research was conducted by Opinium Research on behalf of Recharge, among a nationally representative sample of 2,000 German adults between 15th and 22nd of April 2024.