As Britain recovers from its recent recession, a growing number of people are turning to prepaid cards as a way to manage their finances and avoid debt, according to a new survey by market research firm Opinium. Commissioned by online payment provider Recharge, the survey reveals that one in five Brits, or around 11.4 million people, are now using prepaid cards—an increase of 118% since the onset of the cost of living crisis.
The rising popularity of prepaid cards is largely driven by the need for better financial control. According to the survey, 34% of prepaid card users (approximately 3.9 million) rely on the cards to stay on top of their spending, while 26% (roughly 3 million) use them as a tool to avoid debt. These cards offer a straightforward solution for many households struggling with rising costs, helping them limit their outgoings without falling into debt.
Prepaid cards, which allow users to load a fixed amount of money before spending, are becoming particularly popular among younger people. The research shows that over half (56%) of prepaid card users are aged between 18 and 34, suggesting that the younger generation is more inclined to seek alternative payment methods to manage their budgets. Additionally, men are 53% more likely than women to use prepaid cards, with 26% of male respondents using the cards compared to 17% of women.
London leads the way in prepaid card adoption, with 61% of respondents in the capital using the cards—significantly higher than in other regions. This aligns with broader trends in the city, where the high cost of living has prompted many residents to look for new ways to manage their expenses.
Fraud prevention is another reason why prepaid cards are gaining popularity. Under-35s are 75% more likely than those aged 35 to 54 to use the cards for added financial protection, while men are 55% more likely than women to seek out prepaid options for fraud prevention. Prepaid cards offer users peace of mind by limiting their exposure to fraud since only the amount loaded onto the card can be spent.
Günther Vogelpoel, CEO of Recharge, said, “The cost of living crisis has fundamentally changed how Brits are managing their money. Many are looking for more secure, flexible ways to control their spending, and prepaid payment products are part of that solution. Our research underscores how important financial security and control are in today’s uncertain climate. Recharge is committed to empowering consumers by giving them the tools they need to manage their finances their way.”
The research, conducted by Opinium, surveyed 2,000 UK adults and highlights a shift in consumer behaviour as people adapt to economic challenges. With more people seeking alternatives to traditional banking and credit cards, prepaid cards may continue to grow in popularity as a way for consumers to take control of their financial health.
For more information, contact press@recharge.com.
