In Part I, we introduced you to the KAIKU Prepaid Visa Debit Card, introduced in July of 2012. KAIKU has helped to fuel the rapid transformation of the prepaid card market from “the card of last resort” to a card with appeal to almost all demographic groups. (Leaders in the industry describe this evolution as “mainstreaming” the industry.) Because of this remarkable and accelerating evolution in the market, the prepaid card industry as a whole is projected to expand upward toward $600 billion (per Mercator Advisory Group). I had an opportunity to explore the prepaid market with the CEO of Kaiku, Jon Round. Round boasts over ten years of experience in the prepaid industry – including spearheading the launch of the first ever Visa prepaid card program in both Canada and the United Kingdom. Needless to say, he knows his stuff.
To help us get a clearer grasp on how broad and deep the prepaid market is becoming, Jon provided me with data from KAIKU’s analysis of card usage, which offers an insightful snapshot of the current demographics within the prepaid space.
From KAIKU’s study, here are some illuminating facts regarding the demographics and usage of prepaid cards in general:
- 33% of prepaid users have incomes above $45,000(15% earned more than $70,000);
- More than one-third of prepaid users have a college degree;
- Card usage has experienced consistent growth over the past two years.
In addition to the above, Mr. Round provided these interesting data points related to the KAIKU card itself:
- Fully 55% of KAIKU cardholders configure it for direct deposit. That is an extremely far cry from the prepaid market of just a few years ago – which was dominated by “one and done” cards. The 55% of users who have these regular recurring loads onto their card are obviously “committed” to the Kaiku card – which means a firmer and longer-term relationship between Kaiku and its customer base. It also means a steadily growing “spend rate” within the prepaid market.
- Building on the direct deposit data, 76% of KAIKU cardholders reload their accounts – which also contributes to a strengthening and longer-term customer base.
- Over 75% of KAIKU’s cardholders are between the ages of 21-50 -- demonstrating the broad demographic appeal of prepaid cards.
All in all, KAIKU is helping to pioneer the transformation of the prepaid card market from “the card of last resort” to a card with appeal for a broad swatch of people within the U.S. market. If you are interested in a prepaid card with a huge ATM network and minimal, transparent fees, explore the details at https://www.kaiku.com/.