02/12/2009

European pre-paid market poised for growth

New research from First Data indicates that the pre-paid market is set to see significant growth in the UK, Austria, Germany and Italy over the coming 12 months, as more people look to use pre-paid cards to help them take control of their spending.

In Italy, 66% of respondents have purchased a pre-paid card in the last 12 months and 73% expect to over the next year. In the UK only 21% bought one in the last year, but three times as many - 63% - expect to next year. In Germany and Austria, about a quarter purchased a pre-paid card in the last year, and this looks set to increase to nearly half in the next 12 months.

Overall, 55% felt that a pre-paid card would be an effective tool to help control their spending and assist with money management.

There are also differences between countries in the way customers want to buy pre-paid cards. For Germans, banks are the preferred purchase channel for all types except gift cards. In the UK, three quarters of respondents cite supermarkets as the preferred channel for all except travel cards, while in Italy the majority of consumers would look to the post office to purchase their pre-paid cards.

About two-thirds want to receive information regarding pre-paid offerings through online media and 46% would like to be able to purchase gift cards via the Web.

Ukash is a globally recognised alternative payment method that enables consumers to shop, pay and play online using cash. Ukash can help customers to stay in control of their spending when shopping online because there is no "account" - you simply buy the amount of Ukash vouchers required. This can aid budget management by eliminating the risk of over-spending and allowing customers to see where their money is going.

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