Millennials are leading the rest of the country in their use of prepaid cards, according to a new study from TD Bank.
The study found one-quarter of Americans has used a prepaid card in the past two to three years or use one currently. For millennials, that figures rises to one third, TD Bank said in an April 6 press release.
And of those millennials who have not used a reloadable prepaid card, a 60% majority said they would consider ithigher than 49% of the overall population and 34% of boomers ages 55 and up.
"Millennials favor debit cards and want to avoid overspending," said Tami Farrow, senior vice president and head of retail deposit payments at TD Bank, in the release. "Prepaid cards provide all the flexibility of a debit card, but with the added control of only spending what you load."
Another group of people the survey found to use prepaid cards more frequently than the rest of the population was consumers who dont have a checking or savings account. The share of this group that used prepaid cards was 42%.
Budgeting and security, meanwhile, ranked among the chief concerns of those who have prepaid cards or are interested in them, the survey noted. Among those who have used prepaid cards, 46% believe it helps them budget better and track their spending.
Security also drives interest in prepaid cards. A vast 85% majority of those who currently use or have used a prepaid card said they feel or felt extremely to very secure about their personal information when using the card. In particular, security played into why consumers chose to get bank-issued prepaid cards, with 57% of reloadable card users saying these were more secure.
Nevertheless, 50% of non-prepaid cardholders said they would prefer to acquire one from a big box store, compared with 34% who prefer banks and financial institutions.
The TD survey was hosted by research firm Vision Critical and polled just over 1,300 people. TD Bank itself recently launched its second prepaid card, in following with the growing demand for this card type.