Prepaid general-purpose reloadable (GPR) cards have become a popular alternative to traditional banking, offering convenience, flexibility, and accessibility to a wide range of consumers. However, despite their initial appeal, many users eventually stop using these cards, opting for other financial tools instead. Understanding why consumers abandon GPR cards can provide valuable insights into their limitations, evolving financial needs, and the broader shifts in payment preferences.
Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left of your screen to receive notifications as soon as the episode publishes.
Data for today’s episode is provided by Javelin Strategy & Research’s Report: 2024 General-Purpose Reloadable Card Program Scorecard
Top 4 Reasons for Discontinuing Use of General-Purpose Reloadable Cards
- 33% – Reloading wasn’t convenient
- 31% – Fees were too high
- 15% – Able to qualify for a credit card instead
- 14% – Too many payment cards
Source: Javelin Strategy & Research, 2023
About Report
The 2024 General Purpose Reloadable (GPR) Card Program Scorecard offers a consumer-focused analysis of the competitive open-loop prepaid card market. With total load values reaching $234 billion in 2023 and a steady annual growth rate of 7%, these cards continue to play a critical role in financial access. They serve as a gateway for individuals without traditional credit or debit accounts while also providing a budgeting tool for those managing everyday expenses. The report examines key consumer priorities, including cost structures, security measures, ease of access, and technological convenience.
Among the 10 most popular card programs, the Serve Cash Back card earned the Best in Class distinction for its strong overall performance across multiple evaluation categories. While it did not lead in any single category, its top-three ranking in all three areas secured its high standing. The Target Circle card claimed second place, excelling in the Ongoing Experience category despite a lower score in Additional Benefits and Features. PayPal’s prepaid card followed a similar model to the Serve card, delivering a well-balanced performance across categories and aligning with consumer preferences.
The evaluation considered 51 criteria across three key categories: Ongoing Experience, Costs, and Additional Benefits and Features. Ongoing Experience carried the most weight at 50% of the total score, while Costs and Additional Benefits and Features each contributed 25% to the final rankings
