Virtual Incentives published an analysis of more than $15 million in prepaid card reward spending in February 2024. The company examined US purchases made with Visa and Mastercard reward cards.
In the reported breakdown, dining accounted for 25% of spending, followed by in-store shopping at 18% and groceries at 17%. Online shopping represented 15%, travel 14% and entertainment 11%.
Where analyzed US prepaid reward spending went
Virtual Incentives reported six shares of spending from Visa and Mastercard rewards worth USD100 or less.
% of analyzed spending
Tap or hover for details. All values are also available in the data table.
Source
Provider analysis of more than USD15 million in US spending. Observation dates, card count and category-coding method are undisclosed. These are spending shares, not cardholder shares or evidence of superiority over cash.
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| Category | Share of analyzed spending |
|---|---|
| Dining | 25 % of analyzed spending |
| Shopping in stores | 18 % of analyzed spending |
| Groceries | 17 % of analyzed spending |
| Online shopping | 15 % of analyzed spending |
| Travel | 14 % of analyzed spending |
| Entertainment | 11 % of analyzed spending |
The article focused on rewards worth $100 or less and considered how recipients used flexible prepaid value. The figures show spending on both routine needs and discretionary activities.
Virtual Incentives interpreted the results as support for offering rewards that allow people to choose experiences as well as products. It also compared prepaid cards with transfers into general spending accounts, arguing that a separately held reward may feel more distinctive.
That interpretation comes from the reward provider. The spending percentages describe its analysed transactions, rather than the entire US gift card or prepaid market. The article did not give a precise observation window, so the findings should be understood in the context of its February 2024 publication.
In this article
Emma Carter
Emma Carter covers retail, e-commerce and the gift card shopping experience for Gift Card News.