Despite the UK announcing last week that it is officially out of recession, Brits are increasingly turning to prepaid cards. Consumers are adjusting their spending habits to manage the ongoing cost of living crisis and to avoid debt.
Research released by Recharge reveals that 1 in 5 Brits (11.4 million) use prepaid cards. That represents a 118% increase since the cost-of-living crisis began.
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34% of users (3.9 million) said they use prepaid cards to stay in control of their finances. Meantime, 26% (3 million) use them to avoid going into debt.
More than half (56%) of prepaid card users are aged 18 to 34. Additionally, men are 53% more likely to use prepaid cards compared to women (26% compared to 17% respectively).
UK prepaid cards key trends
- Fear of debt is driving Brits to use prepaid cards. Over 21% of Brits (11.4 million) now use prepaid cards, reflecting a 118% increase since the cost-of-living crisis began.
- Debt Avoidance: 26% of prepaid card users (3 million) use them to avoid going into debt.
- Financial Control: 34% of prepaid card users (3.9 million) aim to stay in control of their finances through prepaid cards.
- Demographics: UK men (26%) are 53% more likely to use prepaid cards than women (17%). Londoners (61%) are 144% more likely to use prepaid cards than any other UK region (next is 25%).
- Online Protection: UK 18 to 34s using prepaid cards (35%) are 75% more likely to use prepaid cards for financial information protection than 35–54-year-olds using them (20%). UK males using prepaid cards (31%) are 55% 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 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.”
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