Prepaid card use rose by about 18 percent in 2011 as consumers dropped traditional banking products such as checking accounts with higher fees, according to a study released today.
About 13 percent of U.S. adults had prepaid cards in 2011 compared with 11 percent in 2010, according to the study by Pleasanton, California-based Javelin Strategy & Research, a market-research firm.
Some banks may offer prepaid cards to consumers who get rejected when applying for a checking account, Robertson said. BB&T Corp. and U.S. Bancorp offer prepaid cards directly to consumers. About 24 percent of prepaid owners have been offered cards by a bank, according to the study.