BELLEVUE, Wash. -- For millions of Americans seeking to become more financially fit this new year, new data shows prepaid products such as cash cards and wireless/cellular airtime are gaining steam as debt-fighters and money-management tools.
Coupled with new mainstream access to replenish these products, industry-watchers predict increased consumer interest, according to a news release.
The sixth-annual Coinstar national currency poll, a consumer study that provides a bi-annual look at Americans and their money, revealed that 19 percent of parents whose children have cell phones plan to convert their payment plan to pay-as-you-go prepaid.
With parents becoming more inclined to manage cell phone airtime expenses through a prepaid account, the issue becomes how to replenish wireless airtime easily and conveniently.
The same is true for prepaid debit cards. In the same Coinstar survey, 32 percent of respondents said they have used prepaid cash cards for purchases and transactions, with many of those citing spending control (34 percent) as a reason why they prefer this form of payment. In addition, 19 percent felt prepaid cards were good for teens/kids.
"As the U.S. prepaid wireless industry evolves, convenience and usability are emerging as critical enablers to the adoption of usage of wireless," said Adam Guy, senior analyst, Wireless/Mobile Services, the Yankee Group. "Combining the accessibility of supermarkets with the usability of Coinstar's self-service kiosk, creates a powerful distribution weapon for wireless carriers."
Coinstar recently upgraded its coin-counting kiosks to feature expanded prepaid and other products.
Eighty percent of Americans responding to the Coinstar survey report having used a kiosk at some point in the past year for everything from self-service gas to self-service check-out to self-service photo services. According to the survey 9 percent have already started using self-service kiosks to either purchase a prepaid phone card or replenish a prepaid phone or debit card account.
