by Deanna Ting | October 07, 2013
A new study from digital and promotion agency Parago, titled “People Prefer Prepaid Rewards,” demonstrates that people prefer to receive prepaid gift cards as incentives. It also shows a preference for physical cards over digital rewards, even when Amazon gift codes are an available option.

The report based its findings on an online shopper survey completed in September 2013 of more than 1,400 U.S. consumers. According to the survey, more than half of surveyed shoppers preferred prepaid cards over gift cards from Amazon, iTunes, Target, Walmart, The Home Depot, and other retailers. Two out of three shoppers surveyed prefer physical cards over digital cards.
 
“We’re not surprised to confirm that consumers love prepaid card rewards,” said Theresa Wabler, global director of marketing at Parago. “These cards are like cash and people enjoy the flexibility and convenience. What was more unexpected was that, in an era of digital shopping, consumers still prefer physical over digital rewards.”

Wabler adds, “This report gives a clear directive to consumer-facing businesses: your customers are more likely to buy from you when rewarded with prepaid cards, sometimes even in values lower than other incentives.”
 
The market for prepaid cards continues to grow. In 2012, it totaled $194.5 billion according to Mercator Advisory Group. The closed-loop, or retailer-specific, prepaid market grew at a slower rate last year.

To read the entire study, please click here