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.

1. Pre-paid cards Usage
13 -17 years olds
April 2010
Heritage in youth insight
Dubit is the leading youth communications company in the UK
Dubit 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 are
and creative process, can real connections and respect be understood, involved and entertained by the insight and projects we
achieved. deliver:
Through its extensive youth networks that it has built up over ten Research with over 37,000 young people, plus schools & families
years, Dubit provides clients direct access to youth audiences, and Marketing & branding expertise; street & viral techniques
an integrated approach that keeps young people at the heart of the Interactive online worlds, games & learning environments
creative 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.
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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 Headlines
Details of Research Entering an established banking market has been a challenge for pre-paid
Dubit Limited ran an online survey over the cards in terms of generating awareness and engendering itself to the right
18th 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 cards
Informer panel. We achieved a nationally
representative sample of 1,000 10% own one or more pre-paid cards
respondents aged 13-17 years old. 2% receive their pocket money onto their pre-paid card...
...and 1% receive their salary onto their pre-paid card
The survey was ten minutes long and 9% top-up their pay-as-you-go phones via their pre-paid cards
covered 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
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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 £1,800
Despite higher levels of awareness amongst males and 17 year olds this per annum at Paypoints and O2 stores. It can
does not convert into higher levels in terms of uptake. Often with be used abroad (2.75% charge) and for topping
teenagers we find that high levels of awareness converts into intention, up mobile phone balances. Includes safety
with tightly targeted campaigns and the power of peer to peer features such as restrictions on over 18 product
recommendations. purchases.
In the case of pre-paid cards, the role of the parent and the nature of the
product suggests that it is a needs based decision, rather than an
emotional purchase. Uptake is diluted amongst 17 year olds as they have Virgin Prepaid
more financial options open to them in terms of personal current accounts. Comes with a £9.95 initial
subscription fee (£4.95 for
8 in 10 who own a pre-paid card are single card users, however there are
second cards) and has fees
a minority, predominately males, who own multiple pre-paid cards.
depending on tariff chosen. The pay-as-you-go
Pre-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 place
in terms of awareness and usage. Its unique position of being available to
O2 customers only, and with the success of the brand as a whole in Neon
optimising their existing customer base, has led to it being the most well A Phones 4U product with a
known. Successful marketing campaigns such as its ‘Soap within a soap’ £9.95 subscription fee and
Hollyoaks campaign has cemented its position on the tip of teenage then no charges for usage. It
tongues. has a £500 limit and comes with a number of
bonus features such as discounts a play.com,
napster and ticketmaster.com
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4. Current Usage
Usage of pre-paid cards (110 base - those who own a card) Purchase behaviour
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53%
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Shopping Online
'!"# How do you shop online (1,000 base)
32% 32%
30%
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19%
%!"#
12%
A majority are either using the internet to browse
$!"#
for cheapest products or research products
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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 more
Females 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 make
number of different types of purchases.
impulsive purchases.
Pocket money
77% of all teenagers are receiving pocket money, a % which decreases
with age as employment increases, but otherwise shows no significant
differences across gender, ethnicity or location.
68% receive their pocket money in cash, with 38% having some of their
pocket money paid into their bank account. These remain the main
channels, however 2% receive pocket money directly onto their pre-paid
cards, with 5% of 13-14 year old males receiving onto a pre-paid card.
Making a purchase
Salary
Most still use high street stores to make
38% are in some kind of employment, predominately part time or casual.
purchases, however online usage is prevalent
Again, 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 a
bank account. Very few contracted roles currently pay into pre-paid cards.
In high street stores 86%
Mobile Phones Online (other) 55%
Online (retailer
Of 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 store
Nearly all of those who own a pre-paid card use it to top-up their pay-as- nearly always plays some role in the purchase
you-go phone. This is supported by the large number of those with the journey.
The Half Roundhouse
Load and Go O2 card, which has to an extent defined the growth within
Wellington Road
the 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: ian.douthwaite@dubitlimited.com
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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
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13-14 year olds showing the most positive future intentions,
@5>;#83#4>6#8<0#91065.#71#60A5.#
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9416# magazines and television are key.
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2#310#3456#.73#83#9416# $"# Outdoor adverts are more popular in densely populated
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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 Facebook
In 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 of
pre-paid cards. Once the purpose and benefits of a pre-paid
card had been clarified there was positive levels of intention to Pre-paid cards have relevance with an often frustrated audience
apply. 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 17
There are a number of barriers to consideration and uptake • 67% want more control over their money, with this number
which can be roughly categorised into more permanent barriers greater for those under 17 and without any form of
such as competing with bank cards required for 17 year olds in employment
employment and reasons which could be influenced through
improving 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)
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TV advert
Magazines
Newspapers
Through the
Radio
Internet
Other
Outdoor
adverts
post
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