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Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: Government Issued Prepaid Cards: Efficient Cash Access and Distribution.
Statistics Around Supplemental Nutrition Assistance Program (SNAP) Prepaid Cards:
- SNAP is the largest government issued prepaid card. But the card carries usage limitations.
- The second largest distributor of government prepaid cards is social security, but those cards carry few restrictions.
- SNAP prepaid cards limit purchases to enumerated food items and prohibit use for alcohol, tobacco, paper products, and prepared foods.
- Pre-pandemic, 12% of the United States population, or 1 in 9 people, received SNAP benefits.
- More than 43% of SNAP recipients are working families, 67% are families with children, and 32% are families with an older adult or person with a disability.
- Moody’s Analytics reports that $1 in SNAP benefits generates $1.70 in economic activity.
About Report
Prepaid cards played a significant role in distributing CARES Act funds to 3.6 million Americans, but the payment form extends deep into many government benefit programs.
Ten benefit programs carried $136.2 billion in prepaid loads during 2019, but only incurred $152.7 million in costs among all government distribution channels. For those in need, prepaid cards provide quick access to funds and a reliable, safe way to receive cash value.
