Although news emerged last week that the UK has exited recession, the cost of living crisis continues to have a very real impact on the lives of most. Now, UK adults are increasingly turning to prepaid cards and adjusting their spending habits to avoid debt, prepaid payment firm Recharge has revealed.
A survey of 2,000 UK adults, conducted by research firm Opinium for Recharge, found that 21 per cent of Brits (equivalent to around 11.4 million) use prepaid cards, a 118 per cent increase since the cost of living crisis began.
Thirty-four per cent of users (3.9 million) said they use prepaid cards to stay in control of their finances, while 26 per cent (around three million) use them to avoid going into debt.
Günther Vogelpoel, CEO of Recharge, said: “The cost of living crisis has changed spending habits, driving Brits to seek alternative ways to ensure they are in control of their spending. Prepaid payment products are just one of the ways they are doing this. Our research highlights the importance of financial security and control. Recharge is all about putting the consumer in charge and providing them with the options to spend their way whilst continuing to meet their evolving needs.”
Recharge also revealed which demographics are most likely to turn to prepaid cards. Overall, 56 per cent of prepaid card users are aged 18 to 34.
UK adults aged 18 to 34 using prepaid cards (35 per cent) are also 75 per cent more likely to use prepaid cards for financial information protection than 35 to 54-year-olds (20 per cent). This highlights a disparity in required support between different age ranges.
Meanwhile, men appeared 53 per cent more likely to use prepaid cards compared to women (26 per cent compared to 17 per cent respectively). Londoners (61 per cent) also emerged as 144 per cent more likely to use prepaid cards than any other UK region (next is 25 per cent).
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