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Payroll card users might not be who you think they are, according to a new report by Mercator Advisory Group, a news and reporting leader in the U.S. prepaid debit card market since 2004, and in Canada since 2014.
The report, titled U.S., Canada, and U.K. Prepaid Markets: Similarities and Differences, provides a comparison of these markets including market size, taxonomy, regulations, and key players. Every year new data is collected and analyzed using the baseline data and trending to benchmark and forecast market size for five additional years, which helps program managers and processors to anticipate where growth will happen as well as where to expect declines.
THE TYPICAL PAYROLL CARDS USER MAY SURPRISE YOU:
Findings in the report go against the old, stereotypical critiques of payroll cards catering only to the underbanked or to those in lower-income brackets. In fact, the typical prepaid user could best be described as a 30-year-old with a post-graduate degree making over $100,000 annually. This customer has a checking account, a savings account, a credit card, and may very well have a mortgage too!
OTHER COMMON MISCONCEPTIONS ABOUT PAYROLL CARD USERS:
1. The most common misconception about payroll cards is that they’re a ‘last resort’ payment method
2. A common misconception is that payroll card users are on the lower end of the income scale.
3. Another misconception is that payroll cards are not good for employees. If the employer enables immediate access to employee funds and avoidance of fees:
WHAT PERCENTAGE OF THE PREPAID MARKET ARE PAYROLL CARDS?
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
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