More than half of the American population purchased at least one prepaid card in 2017. If your credit union is not currently offering a gift or prepaid debit card, chances are that you’re missing out on a valuable form of revenue and an equally valuable opportunity to expand your member base and relevancy to your current members.
Don’t just take our word for it; here are 6 reasons why your credit union should offer a gift card to your members today:
1-Millennials are using gift cards. According to one study conducted by the Blackhawk Network, 89% of gift card purchasers are between the ages of 18-34. Since Millennials have $200 billion in buying power, we know that credit unions are always looking for new ways to increase their millennial member base, and offering gift cards is a great step towards that goal.
2-They can help your members manage their finances and avoid debt. Using gift cards can help your members stay within their budget when shopping or eating out thanks to their set spending limit.
3-Gift cards are safer than cash. Gift Cards aren’t tied to your member’s checking or savings accounts, therefore they pose no risk to your members’ accounts or identity if lost or stolen.
4-They enhance purchasing power for the underserved and underbanked. Gift cards allow your members who may not qualify for a debit card make purchases online and other establishments where cash is not accepted.
5-Almost everyone plans on purchasing a gift card in the near future. According to a study conducted by the Retail Gift Card Association, 70% of consumers plan on buying a gift card in the next few months.
6-Gift cards increase your credit union’s program offerings. The more products a member has with your credit union, the more likely they are to bank with you in the long run. Gift cards are a great way to increase the number of credit union offerings used by your members and can help them get into your branches and face to face with your sales reps.
It’s important to know that while offering a gift card is an important step to attracting and retaining more members, not all gift card programs are created equal. You want to look for a gift card that offers instant issue and a way for your members to track their balance and purchases for free online. It’s also important that your gift card provider has customer service representatives available to help assist your members when necessary.
Ready to offer your members the best gift cards available? Contact LSC’s sales department today at 1-800-942-7124.