According to research conducted by Opinium, one in five (20%) Brits reveal that they are turning to prepaid cards as a means for greater financial control.
Whilst the UK government announced last week that the country is officially out of recession, inflation still stands at 5.25%, significantly higher than the government’s target of 2%.
This means that the price of goods and services continues to remain high for a majority of the population, and prepaid cards are now being used more regularly to control spending and avoid debt.
Opinium’s research – conducted by Recharge – found that of the 2,000 UK adults surveyed, 11.4 million Brits are using prepaid cards, a 118% increase since the cost-of-living crisis began in 2022.
34% of users (3.9 million) said they use prepaid cards to stay in control of their finances, while 26% (3 million) use them to avoid going into debt.
More than half (56%) of prepaid card users are aged 18 to 34. Additionally, the survey revealed that men are 53% more likely to use prepaid cards compared to women (26% compared to 17% respectively).
Opinium also found that 26% of UK men are 53% more likely to use prepaid cards more than women (17%). UK males are also using prepaid cards (31%) are 55% more likely than female users (20%) to use prepaid cards to protect against fraud.
Many financial security firms have been highlighting potential fraud types and scam tactics to alert consumers on their dangers during the midst of the cost-of-living crisis.
The survey found that UK people aged 18 to 34 are particularly concerned about potential fraud and scams. 35% of respondents stated they are more likely to use prepaid cards for financial information protection than 35-54-year-olds.
Günther Vogelpoel, CEO of Recharge, commented on the findings: “The cost-of-living crisis has changed spending habits, driving Brits 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.”
