American shoppers prefer network branded (aka “open loop”) cards for post-purchase awards, even when higher value options exist, new research from Blackhawk Engagement Solutions suggests.
People prefer prepaid looked at shopper preferences for post-purchase incentives and overall adoption of prepaid products.
With post-purchase incentives, shoppers will trade money for increased control over how and where they spend them. More than 60 percent (64) prefer a $25 open loop card over a $30 store-specific card.
People are slowly warming to digital incentives but they still appreciate a tangible reward reminder, as 61 percent prefer a plastic card over a digital e-code. That number grows to 68 percent when the reward amount is $100. Acceptance of e-codes is growing – 84 percent would accept one if a plastic card was unavailable.
A strong majority of consumers believe prepaid cards limit identity fraud (73 percent) and are safer online (70 percent). Many have purchased a prepaid card in the last year (64 percent) while close to half have bought prepaid cards for personal use.
“Prepaid cards transformed the incentives industry, providing for a simple and universally accepted reward vehicle, which has been steadfastly embraced by shoppers,” Blackhawk Marketing GVP Rodney Mason said. “And Americans not only enjoy prepaid for rewards, they have widely embraced the products as payments tools and gifts for general use.”