Pre-paid cards report - Dubit

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Pre-paid cards report - Dubit

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Details of research Dubit Limited ran an online survey over the 18th to the 24th of March 2010. The survey was emailed to the Dubit Informer panel and we achieved a nationally representative sample....

Details of research Dubit Limited ran an online survey over the 18th to the 24th of March 2010. The survey was emailed to the Dubit Informer panel and we achieved a nationally representative sample.

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  • 1. Pre-paid cards Usage 13 -17 years olds April 2010Heritage in youth insightDubit is the leading youth communications company in the UKDubit believe that only through a deep understanding of young In 2010, we now have 40 professionals across three departments,people, and keeping close to the audience throughout the strategic who share the identical ethos of ensuring that young people areand creative process, can real connections and respect be understood, involved and entertained by the insight and projects weachieved. deliver:Through its extensive youth networks that it has built up over ten Research with over 37,000 young people, plus schools & familiesyears, Dubit provides clients direct access to youth audiences, and Marketing & branding expertise; street & viral techniquesan integrated approach that keeps young people at the heart of the Interactive online worlds, games & learning environmentscreative process. We understand the issues surrounding young people in the commercial world, because we’ve experienced it first hand. We research it, create resources for it, and take our role seriously. 1
  • 2. Research Findings This report provides information into awareness and usage of pre-paid bank cards in the UK amongst 13-17 year olds. Key HeadlinesDetails of Research Entering an established banking market has been a challenge for pre-paidDubit Limited ran an online survey over the cards in terms of generating awareness and engendering itself to the right18th to the 24th of March 2010. consumer base and their needs. At the end of the first quarter of 2010 the following report scopes the 3.276m* 13-17 year olds in the UK:The survey was emailed to the Dubit 42% are aware of pre-paid cardsInformer panel. We achieved a nationallyrepresentative sample of 1,000 10% own one or more pre-paid cardsrespondents aged 13-17 years old. 2% receive their pocket money onto their pre-paid card... ...and 1% receive their salary onto their pre-paid cardThe survey was ten minutes long and 9% top-up their pay-as-you-go phones via their pre-paid cardscovered the following topics: Of those who don’t have a pre-paid card, 73% would consider• Current sources of income: one after having it described to them *data from ONS mid-2006 census • Pocket money Pre-paid cards awareness • Salaries Awareness of pre-paid cards (1,000 base)• Pre-paid cards: • Awareness • Usage • Attitudes 14, 15 and 16 year olds demonstrated the same level of awareness of • Future intention pre-paid cards. 17 years olds exhibited the highest level of awareness, which you may expect given a greater exposure period.• Shopping behaviour: • Purchases Pre-paid Cards in the UK In the last ten years pre-paid cards have really taken off in the • Online behaviour US; it is now a growing market in UK consumer finance Key selling points are that you don’t need to have a credit check • Researching purchases and that you can control spend whilst avoiding any risk of debt The flexibility and control elements are also ideal for students• Attitudes towards carrying cash traveling or people on Gap Years; they have become a natural extension to the 13-17 year old target market 2
  • 3. Uptake of pre-paid cards (438 base - only those aware) Current card options O2 Load and Go Card Exclusively for O2 customers, the card lends on existing relations providing free subscription and usage. Can ‘load’ up to £1,800Despite higher levels of awareness amongst males and 17 year olds this per annum at Paypoints and O2 stores. It candoes not convert into higher levels in terms of uptake. Often with be used abroad (2.75% charge) and for toppingteenagers we find that high levels of awareness converts into intention, up mobile phone balances. Includes safetywith tightly targeted campaigns and the power of peer to peer features such as restrictions on over 18 productrecommendations. purchases.In the case of pre-paid cards, the role of the parent and the nature of theproduct suggests that it is a needs based decision, rather than anemotional purchase. Uptake is diluted amongst 17 year olds as they have Virgin Prepaidmore financial options open to them in terms of personal current accounts. Comes with a £9.95 initial subscription fee (£4.95 for8 in 10 who own a pre-paid card are single card users, however there are second cards) and has feesa minority, predominately males, who own multiple pre-paid cards. depending on tariff chosen. The pay-as-you-goPre-paid card application (110 base - those who own a card) tariff has a 2.95% fee per transaction whilst the pay monthly has a £4.95 monthly fee plus a !"#$%&()*#%$$+,-#./&#,)#./&#0# 1#%$$+,-#./&#,)#%(-#0"#$%&()*#%$$&/2-#,)# 3)4&# £1.50 charge for each cash withdrawal. The card offers Virgin rewards such as Holidays, Experiences and Gym memberships. 43% 39% 25%Brand awareness and usage (1,000 base) Payzone Can load up to £350 in one deposit which is instantly accessible. There is a fee for loading (£3.95 or £6.95 depending on amount loaded), a 1.95% fee per purchase or £1.50 per ATM withdrawal. It also holds an inactivity charge of £2 for every month not used after 2 months of non-use. Can be used worldwide at Payzone’s 5,000 cash points.O2 Load and Go card holds a significant presence within the market placein terms of awareness and usage. Its unique position of being available toO2 customers only, and with the success of the brand as a whole in Neonoptimising their existing customer base, has led to it being the most well A Phones 4U product with aknown. Successful marketing campaigns such as its ‘Soap within a soap’ £9.95 subscription fee andHollyoaks campaign has cemented its position on the tip of teenage then no charges for usage. Ittongues. has a £500 limit and comes with a number of bonus features such as discounts a, napster and 3
  • 4. Current UsageUsage of pre-paid cards (110 base - those who own a card) Purchase behaviour )!"# 53% (!"# 45% Shopping Online !"# How do you shop online (1,000 base) 32% 32% 30% &!"# 19% %!"# 12% A majority are either using the internet to browse $!"# for cheapest products or research products !"# Small Large To top up my Gifts (i.e. for Purchasing Emergency Other before going to a store to make the purchase. purchases purchases that phone someone else) everyday items funds you save up for However around a third are becoming moreFemales are more likely thank males to use the card for multiple reasons engaged with making purchases online because of the ability to search for a specific product,however, on the whole pre-paid cards provide the ability to make a achieve the most affordable price or makenumber of different types of purchases. impulsive purchases.Pocket money77% of all teenagers are receiving pocket money, a % which decreaseswith age as employment increases, but otherwise shows no significantdifferences across gender, ethnicity or location.68% receive their pocket money in cash, with 38% having some of theirpocket money paid into their bank account. These remain the mainchannels, however 2% receive pocket money directly onto their pre-paidcards, with 5% of 13-14 year old males receiving onto a pre-paid card. Making a purchaseSalary Most still use high street stores to make38% are in some kind of employment, predominately part time or casual. purchases, however online usage is prevalentAgain, cash and bank accounts are the main payment channels with only especially with males.1% paid directly onto a pre-paid card. Where do you make your purchase (1,000 base)Those in employment tend to be older, and therefore more likely to have abank account. Very few contracted roles currently pay into pre-paid cards. In high street stores 86%Mobile Phones Online (other) 55% Online (retailerOf the interviewed 99% own mobile phones: direct) 53% Online (catalogue) 41%Mobile phone ownership (995 base) Magazine 10% catalogues Other 3% TV shopping 2% channels 21% 37% 31% 40% 44% 45% 51% 53% Contract Favorite products Pay as you Go 79% Females show preference for purchasing 69% 60% 63% 56% 55% 49% 47% products that can require an element of touch or feel such as clothes, shoes and accessories. Total Male Female 13 14 15 16 17 This does not necessarily indicate high-street purchasing but certainly means that the storeNearly all of those who own a pre-paid card use it to top-up their pay-as- nearly always plays some role in the purchaseyou-go phone. This is supported by the large number of those with the journey. The Half RoundhouseLoad and Go O2 card, which has to an extent defined the growth within Wellington Roadthe market place. Leeds Males are more inclined towards purchasing LS12 1DR CD’s, DVD’s and computer games and as such T: 0113-3947920 online is a more influential channel. E: 4
  • 5. Topping up pay-as-you-go phone (588 base) Mass media are the key channels for raising awareness of pre- paid cards and communicating the benefits. With females and B8C#4#.73#83#9416#5>#4#</73# *"# 13-14 year olds showing the most positive future intentions, @5>;#83#4>6#8<0#91065.#71#60A5.# ()"# 9416# magazines and television are key. ->?5>0# %"# :/178;/#4#94</#=49/5>0# %&"# 2#310#3456#.73#83#9416# $"# Outdoor adverts are more popular in densely populated -./01# !"# environments such as London, however it is important to avoid +"# %+"# (+"# ,+"# &+"# *+"# )+"# confusion with Oyster Cards when advertising near public transport.Future Intentions Other channels include social networks, especially FacebookIn a relatively new market place there are high levels of intention with some mentions of Spotify as it targets a very relevant audience.amongst those who currently do not use, or are not aware ofpre-paid cards. Once the purpose and benefits of a pre-paidcard had been clarified there was positive levels of intention to Pre-paid cards have relevance with an often frustrated audienceapply. when it comes to money:Consideration of those who currently don’t own card (902 base) • 9 in 10 have in the past not been able to make a purchase that they really wanted to Won’t 21% 19% 21% 27% 34% 22% 31% consider 43% Consider • This includes clothes, fashion, dresses and shoes for the females. The males also include clothes but also lead to 73% 79% 78% 81% 79% 66% 69% 57% game consoles, the games and technology Total Male Female 13 14 15 16 17There are a number of barriers to consideration and uptake • 67% want more control over their money, with this numberwhich can be roughly categorised into more permanent barriers greater for those under 17 and without any form ofsuch as competing with bank cards required for 17 year olds in employmentemployment and reasons which could be influenced throughimproving communication and education of benefits. • Perhaps more important is the need to provide a safe alternative with: What’s the point when I can I thought it was only available I’ve wanted one but get a debit card which works in certain places for public am definitely not the same except prepaid transport e.g. London Oyster prepared to pay a cars actually charge for using it, and topping up setup fee Card • a third having lost their wallet in the past Too expensive to Parents don’t know • 7% having mugged in the past, a % that significantly use...however looking at the O2 version as free to me as I about them so would not understand how rises in London and the Midlands and most alarmingly recently switched mobile they work network amongst Asians that we spoke with, where 21% had been mugged in the past.Where would you expect to see advertisements (1,000 base) !"#$ %!#$ "&#$ !#$ &#$ &!#$ &#$ #$ TV advert Magazines Newspapers Through the Radio Internet Other Outdoor adverts post 5