Shared research study link

Perx Rewards: Employee Reward Card Uptake & Adoption

Understand what drives employees to value, use, and engage with prepaid reward cards from their employers. Explore barriers to adoption, preferences vs other reward types, activation friction, and what makes an employee reward program feel meaningful vs transactional. Focused on product management insights for improving customer uptake.

Study Overview Updated Feb 03, 2026
Research question: What drives employees to value, use, and engage with employer-funded prepaid reward cards versus cash, store vouchers, or paid time off, and how can activation friction be removed to improve uptake. Research group: 20 UK employees (frontline retail/warehousing, office/digital, and carers; ages 28–58) provided 140 responses across seven prompts.

What they said: Across roles, cash or protected paid time off is preferred for flexibility, immediacy, and respect; prepaid Mastercards are “faffy” due to activation hoops, short expiries, fees, and stranded balances, with the single biggest non-use driver being activation friction + mistrust. Digital works when it’s one‑tap into Apple/Google Wallet, pre‑activated, balance/expiry visible, split‑tender capable, and accepted at supermarkets/petrol; locked physical cards often become “drawer clutter.” Fairness and specificity matter: generic praise and a quarterly £150 prepaid prize rarely change behaviour (most say it won’t); real levers are ~£250–£500 cash/quarter via payroll or a ring‑fenced paid day off.

Takeaways for product and HR: Default to cash or bankable paid time off with a simple opt‑in to a card; if issuing cards, make them wallet‑first, pre‑activated, long‑dated (12–24 months), fee‑free, supermarket/fuel‑friendly, and split‑tender with clear, trusted comms plus two short nudges. Set a meaningful floor (≥£50, ideally £100), show live balance/expiry in‑wallet, and add a 14‑day fail‑safe that auto‑converts unused value to payroll or a major‑grocer e‑voucher to effectively guarantee redemption. Measure and de‑risk: track 14‑day activation/spend, first‑use decline rate, and breakage; publish acceptance guidance and provide fast human support so one failed transaction doesn’t kill trust.
Participant Snapshots
20 profiles
Daniel Whittaker
Daniel Whittaker

32-year-old Kirklees homeowner and building services technician. Pragmatic, Green-leaning Christian, married without kids. Values durability, transparency, and local community. Spends weekends running, hiking, DIY, and cooking simple, plant-forward meals.

Naveed Rahman
Naveed Rahman

32-year-old Bradford youth worker, married, no kids. Pragmatic, value-focused, and community-minded. Budgets carefully, prefers reliable mid-tier products, enjoys football, hikes, and local culture, and supports evidence-led policy and local services.

Jamie Collins
Jamie Collins

28-year-old Bristol-based digital designer balancing part-time nonprofit work and freelance UX. Frugal, eco-minded, and community-oriented; lives alone, bikes, cooks veg-forward meals, loves gigs and climbing. Prefers transparent, durable, low-waste product…

Hannah Cooper
Hannah Cooper

Hannah Cooper, 32, is a Bristol-based single mum and biomedical lab technician. Budget-conscious, practical, and community-minded, she values durability, transparency, and sustainability, choosing family-friendly, mid-range options that save time and delive…

Mariel Santos
Mariel Santos

Mariel, 32, is a Filipino Christian single mum in Bristol. She works from home in a professional role on a tight budget, values reliability and transparency, and prioritizes faith, children, community, and practical, time-saving choices.

James Fletcher
James Fletcher

Pragmatic Birmingham-based remote sales professional, married with one child. Budgets carefully, values transparency and reliable mid-tier products. Socially liberal, community-minded, and time-efficient, balancing family routines with health, football, and…

Adam Collins
Adam Collins

Liverpool-based, 44-year-old Muslim convert and former maintenance tech, currently unemployed and retraining. Married without children, budget-conscious homeowner, community-minded, values durability, transparency, and halal fit. Practical, polite, and focu…

Claire Whitaker
Claire Whitaker

Claire Whitaker, 40, married without children, owns a modest Bradford terrace. Former retail worker, now inactive and volunteering. Budget-conscious, practical, community-oriented, Conservative-leaning, values plain-English, durable products, and transparen…

Daniel Varghese
Daniel Varghese

Sheffield-based, single 50-year-old British Indian Christian. Senior office manager, homeowner, practical and community-minded. Enjoys Peaks hikes, cooking, choir, football. Values reliability, fairness, privacy, and simplicity; research-driven, risk-averse…

Adam Whitfield
Adam Whitfield

A 48-year-old Bradford-based Muslim IT service manager, value-conscious homeowner, and quiet outdoors enthusiast. Practical, privacy-minded, and community-oriented, he favours durability, ethical choices, and clear communication while balancing faith, famil…

Declan Murphy
Declan Murphy

Irish-born, Liverpool-rooted single dad and social renter. Frugal, community-minded, retraining for IT support after warehouse work. Loves LFC, batch cooks, values clear terms and reliability, wary of long contracts and hidden fees.

Kelly Murphy
Kelly Murphy

Liverpool-based single mum, 50, supermarket shelf replenisher with tight but stable finances. Practical, community-minded, and value-driven. Loves batch cooking, dog walks, LFC, and car boot finds. Prefers transparent, no-faff services and honest brands.

Leyla Rahmani
Leyla Rahmani

Leeds-based Kurdish-British NHS domestic assistant and Army veteran. Single, 51, homeowner, walks to work. Frugal, ethical, and practical; Green supporter who values durability, community, and simple routines like gardening, cooking, and world cinema.

Candice Petersen
Candice Petersen

South African-born Leeds operations manager and single mum who prizes reliability, transparency, and value. Pragmatic, community-minded, and health-conscious, she balances a demanding logistics role with family, budgeting, and cultural ties.

Maeve O'Connor
Maeve O'Connor

Irish technical writer in Croydon, 57, divorced, no kids. Owns a flat, budgets carefully, values clarity, fairness, and sustainability. Bookish, outdoorsy, cat owner. Pragmatic, socially liberal, digitally savvy, cautious buyer who prizes reliability and tr…

Conor Daly
Conor Daly

Conor Daly, 29, Irish citizen in Coatbridge, is a frugal, friendly jobseeker with warehouse experience. Owner-occupier, loves football, DIY, and batch-cooking. Seeks straightforward value, flexible terms, and practical upskilling to regain stability.

Daniel Okoye
Daniel Okoye

55-year-old mixed-heritage GIS technician in Glasgow. Irish citizen, Christian, married without children, private renter on a modest household income. Frugal, community-minded, practical, privacy-conscious; enjoys walks, football radio, batch-cooking, and c…

Rhys Morgan
Rhys Morgan

Rhys Morgan, 51, a Cardiff renter and ex-warehouse supervisor, is unemployed but resourceful. Frugal, loyal, and Welsh-proud, he values reliability, fairness, and clear value. He volunteers, retrains, and stays connected to family and community.

Sian Griffiths
Sian Griffiths

A 58-year-old HR professional in Rhondda Cynon Taf, Sian is pragmatic, community-minded, childfree, and value-conscious. She loves dog walks, Welsh rugby, and choir, prefers clear, durable products, and favours practical, no-nonsense solutions.

Sarah Maguire
Sarah Maguire

Budget-conscious, community-minded insurance professional in rural Northern Ireland. Married with a rescue dog, she loves hillwalking, trad music, and simple comforts. Values reliability, transparency, and durability; avoids hype; chooses practical, evidenc…

Overview 0 participants
Sex / Gender
Race / Ethnicity
Locale (Top)
Occupations (Top)
Demographic Overview No agents selected
Age bucket Male count Female count
Participant locations No agents selected
Participant Incomes US benchmark scaled to group size
Income bucket Participants US households
Source: U.S. Census Bureau, 2022 ACS 1-year (Table B19001; >$200k evenly distributed for comparison)
Media Ingestion
Connections appear when personas follow many of the same sources, highlighting overlapping media diets.
Questions and Responses
7 questions
Response Summaries
7 questions
Word Cloud
Analyzing correlations…
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Persona Correlations
Analyzing correlations…

Overview

Across 130 respondents the dominant drivers of perceived value and uptake are practicality and low friction. Employees overwhelmingly prefer flexible, immediately usable rewards - primarily direct cash (payroll credit) or bankable protected time off - and reject reward formats that introduce activation steps, narrow merchant fit, short expiries, or opaque rules. Prepaid Mastercards can work as a fallback only when they are pre-activated, wallet-native, show balance/expiry up-front, allow split-tender at tills, and have long validity. Meaningfulness maps to everyday utility (groceries, bills, fuel, childcare relief) and fairness/transparency; performative or one-off experiential gestures score poorly unless paired with operational fixes or real protections (guaranteed cover for time off). Geography, shift patterns and caregiving responsibilities materially change which formats are useful, and a simple default (cash/time) plus an easy opt-in for alternatives reduces waste and resentment.
Total responses: 140

Key Segments

Segment Attributes Insight Supporting Agents
Frontline hourly & shift workers (retail, warehousing, logistics)
occupations
  • Grocery Retail
  • Warehousing & Distribution
  • Logistics
income bracket
lower-to-mid
work patterns
shift work, nights, weekends
priorities
  • household budgeting
  • rota fairness
  • immediacy
Prefer cash or supermarket/fuel credit and bankable paid time off; any activation steps, niche vouchers or physical-card pin-by-post flows create administrative burden and rapid non-use. Fair distribution across shifts/part-time roles is critical. Kelly Murphy, Declan Murphy, Candice Petersen, Conor Daly, Maeve O'Connor, Rhys Morgan
Caregiving / school‑timetabled employees
life context
parents / carers with time-constrained schedules
priority
protected, bookable time with guaranteed cover
sensitivity
need for predictable scheduling and no 'make-up' hours
Often value a protected paid day off above small cash amounts because time directly resolves childcare and appointment constraints; protection/cover assurances are necessary for perceived value. James Fletcher, Candice Petersen, Hannah Cooper, Jamie Collins, Mariel Santos
Digital/office professionals (IT, design, project roles)
industry
  • Software
  • Cloud
  • UX/Design
education
degree+
preference
digital convenience, wallet integration
Accept digital prepaid cards only when frictionless (one-tap wallet add, visible balance/expiry, no new apps/KYC). They want the ability to sweep balances into savings/banks and prefer meaningful amounts that justify attention. Jamie Collins, Naveed Rahman, Daniel Varghese, Adam Whitfield, Mariel Santos
Mid/high-income professionals & managers
roles
  • Managers
  • Senior individual contributors
income bracket
mid–high
preferences
  • time off
  • career-recognition
  • structural fixes
Often value protected time and development opportunities equal to or above modest cash; they emphasise transparent criteria and tying recognition to meaningful operational change or documented appraisal evidence. Adam Whitfield, Daniel Varghese, James Fletcher, Sian Griffiths, Rhys Morgan
Older, lower-income employees (50+)
age
50+
income bracket
lower
priority
clear legitimacy and simplicity
Strong preference for payroll cash because it directly helps household budgets and avoids activation anxiety; printed info or an easy phone-check option and long expiries increase trust in card-based rewards. Kelly Murphy, Maeve O'Connor, Claire Whitaker, Daniel Varghese
Remote / rural employees
location
rural / outside city centres
commute
car-dependent
constraint
limited access to city-centric merchants
City-focused, single-merchant rewards (restaurants, event vouchers) are frequently unusable; fuel, supermarket credit, cash or time off are far more meaningful and drive higher uptake. Sarah Maguire, Conor Daly, Rhys Morgan
Younger fintech-native employees
age
20s–30s
banking habits
Monzo/fintech users
expectation
seamless digital wallet and immediate visibility
Expect instant wallet integration and visibility in their banking flow; physical cards or delayed activations are likely to be ignored regardless of nominal value. Jamie Collins, Mariel Santos, Leyla Rahmani
Nonprofit / public‑sector workers
industry
  • Nonprofit
  • Public-sector
  • Life Sciences
values
outcome impact, direct client benefit
Prefer practical recompense that helps clients or reduces administrative pain (bus passes, direct cash to assist clients); employer donations made in an employee's name or performative gestures can feel misaligned or transactional. Naveed Rahman, Mariel Santos, Hannah Cooper

Shared Mindsets

Trait Signal Agents
Cash or bankable time-off is the highest-value default Across incomes and sectors, respondents place payroll cash and protected, bankable time off at the top because both are flexible, low-friction, and directly address household or wellbeing needs. Kelly Murphy, James Fletcher, Claire Whitaker, Daniel Whittaker, Hannah Cooper, Candice Petersen, Naveed Rahman, Mariel Santos
Activation friction kills uptake Forced sign-ups, KYC, mailed PINs, vendor portals and hidden balances create immediate drop-off; much of the rejection of prepaid cards is driven by these operational frictions rather than card type alone. Maeve O'Connor, Claire Whitaker, Adam Collins, Declan Murphy, Daniel Varghese, Naveed Rahman
Usability > novelty Employees prefer small, practical gestures (a paid hour off, a manager acknowledgement, cash) over showy experiences or hampers; novelty without utility is perceived as performative. Adam Whitfield, Adam Collins, Mariel Santos, Claire Whitaker, Candice Petersen
Fairness & transparency are essential Selection criteria, equitable access across shifts/part-time/remote staff, and avoiding manager-favourite lotteries reduce resentment and increase perceived meaningfulness. Sian Griffiths, Daniel Varghese, Candice Petersen, Adam Collins, Jamie Collins
Low-admin default with easy choice increases uptake Make the default reward simple (payroll cash or protected time) and offer a frictionless opt-in (pre-activated wallet card or supermarket voucher) instead of forcing all employees into one format. Naveed Rahman, Daniel Varghese, Mariel Santos, James Fletcher, Hannah Cooper
Amount threshold matters Very small values (<£30) are often ignored unless entirely frictionless; £50–£100 is often the minimum that justifies the cognitive overhead of redemption. Naveed Rahman, Adam Collins, Kelly Murphy, Jamie Collins, James Fletcher
Digital wallet + split‑tender support materially improves redemption Pre-activated digital cards that add to Apple/Google Wallet, show balance/expiry and allow split payments at tills increase same-week spend and reduce stranded balances. Jamie Collins, Mariel Santos, Adam Collins, Daniel Whittaker
Reminders and fallbacks reduce waste A simple reminder sequence (early and near-expiry) combined with a clear fallback (auto-swap to payroll or supermarket voucher) significantly reduces unredeemed rewards. Daniel Whittaker, Mariel Santos, Jamie Collins, James Fletcher, Declan Murphy

Divergences

Segment Contrast Agents
Public recognition vs private utility Most employees prefer private, practical rewards; a minority (e.g., Mariel Santos) value public, named recognition (LinkedIn posts) combined with cash - indicating that public recognition can be meaningful for career-oriented respondents. Mariel Santos
Pragmatic support for prepaid Mastercards While prepaid cards are broadly criticised for friction, some respondents (Rhys Morgan) view a well-executed prepaid Mastercard as a practical fallback when payroll credit is infeasible. Rhys Morgan
Physical card affinity Most digital-first respondents prefer wallet-native flows, but some (Adam Collins) perceive a tactile physical card as more 'real' and immediate - suggesting a small segment responds to tangible artifacts if activation is trivial. Adam Collins
Older-employees digital preference outliers Although older employees generally prefer printed balances/phone checks, some older respondents (Daniel Varghese) still prefer seamless digital wallet flows, showing cross-cutting behavior by tech comfort rather than age alone. Daniel Varghese
HR-design intent vs front-line preference HR or people-leaders (Sian Griffiths) often emphasise time-off and manager-led recognition, which can diverge from frontline employees who prioritise direct cash - indicating a potential design blind spot between program intent and recipient utility. Sian Griffiths
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Recommendations & Next Steps
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Overview

Goal: increase activation and same‑week spend of employer‑funded prepaid rewards by making them behave like cash or protected time with near‑zero friction. Findings show employees prefer payroll cash or bankable paid time off; prepaid works only if it is wallet‑native, pre‑activated, shows balance/expiry, supports split‑tender, avoids fees/short expiry, and includes simple nudges and a fallback (auto‑convert) if unused. As an API‑first org, ship wallet/magic‑link flows, comms templates, and employer webhooks to drive 14‑day activation while preserving trust and fairness.

Quick Wins (next 2–4 weeks)

# Action Why Owner Effort Impact
1 Ship wallet pass with visible balance/expiry and magic‑link add Digital one‑tap add to Apple/Google Wallet with balance + expiry on the pass is the single biggest uplift to same‑week use; removes forced account/KYC friction called out repeatedly. Product (API) + Engineering (Wallet/Payments) Med High
2 HR comms kit: one‑line 'spend now' email/SMS + manager script Known‑sender, plain English, immediate message at moment of praise increases trust; reduces 'looks like phishing' and makes the next step obvious. Customer Success + Marketing Low High
3 3‑touch reminder cadence with live balance Day 3/7/12 nudges with the exact balance and suggested uses (groceries, fuel) drive completion without spam; addresses forgetfulness as a top failure mode. Customer Success + Engineering (Notifications) Low High
4 Set a floor and bundle small awards (≥£50, prefer £100) Values under ~£30 are often ignored; bundling raises perceived value and justifies attention, increasing 14‑day redemption. Ops (Issuer) + Customer Success Low Med
5 Publish split‑tender and acceptance microcopy Fear of public decline stalls usage; clear on‑pass tips ('ask to split payment') and MCC guidance reduce embarrassment and stranded pennies. Design/UX + Product Low Med
6 Pilot small Day‑7 activation top‑up (+£5) A tiny, time‑boxed nudge reliably accelerates first use without changing core economics; test ROI fast. Product (Growth) + Finance Low Med

Initiatives (30–90 days)

# Initiative Description Owner Timeline Dependencies
1 Wallet‑first, no‑account activation (magic‑link) with physical fallback Design an API‑driven flow where awards arrive pre‑activated via magic‑link to Add to Apple/Google Wallet; show balance/expiry on‑pass; no new app/login/KYC under regulated thresholds. Offer opt‑in pre‑activated physical card for non‑smartphone users. Product (API) + Engineering (Wallet/Payments) + Compliance 0–90 days (MVP in 60 days, rollout by day 90) Issuer BIN and tokenization support, Apple/Google Wallet passes, Compliance sign‑off for low‑value no‑KYC, Email/SMS sender reputation (DMARC/SPF)
2 Auto‑convert fallback after 14 days (payroll/supermarket/time‑off) If unused by Day 14, auto‑offer conversion via one click to employer payroll credit, major‑grocer e‑voucher, or bankable paid‑time token; provide webhooks so HRIS/Payroll can reconcile. Product + Partnerships (Payroll/Grocers) + Engineering (Webhooks) 60–120 days Employer payroll integration or export file spec, Voucher aggregator integration, HRIS mapping for time‑off tokens, Consent and audit logging
3 Acceptance & reliability program Reduce first‑use declines: enable MCCs for supermarkets/fuel, document pay‑at‑pump caveats, ensure split‑tender guidance, and run a retailer test matrix; expose a status page and decline telemetry. Product + Issuer Ops + Support 30–120 days (ongoing) Issuer config (MCC allowlist), Support playbooks, Telemetry pipeline for declines
4 Fairness & choice module for HR admins Default to cash/time with a simple opt‑in to card at claim; add manager toolkit for specific, named feedback, team credit, and protected‑time scheduling with cover. Customer Success + Product (Admin) 45–120 days Admin UI changes, HRIS calendar integration, Template library
5 Redemption analytics + trust layer Instrument funnel (send→add→first‑tap→clear), show live balance, track time‑to‑first‑use, decline rate, breakage; strengthen trust (known sender domain, plain‑English T&Cs, privacy copy). Data/Analytics + Marketing IT + Product 0–60 days for MVP dashboards; enhancements by 90 days Event instrumentation, BI dashboards, DMARC/SPF alignment
6 In‑journey human support window (first 14 days) Provide live chat/WhatsApp and a UK phone line with SLAs during the initial 14‑day window; publish a one‑page troubleshooting guide and POS split‑tender tips. Support + CX Ops 30–60 days Staffing plan, Knowledge base, Telephony/Chat tooling

KPIs to Track

# KPI Definition Target Frequency
1 Activation within 14 days Share of issued cards added to wallet or first used within 14 calendar days >= 90% Weekly
2 Spend‑through 14 days Percent of total award value spent within 14 days of issue >= 85% Weekly
3 Time‑to‑first‑use (median) Median days from award send to first successful authorization < 3 days Weekly
4 First‑attempt POS decline rate Percent of first transactions that fail for non‑insufficient‑funds reasons < 1.0% Weekly
5 Breakage (90‑day) Unspent value as a percent of awards after 90 days (post fallback) < 2% Monthly
6 Redemption experience CSAT Post‑use 2‑question CSAT/NPS specific to redemption flow CSAT >= 4.5/5 or NPS >= +40 Monthly

Risks & Mitigations

# Risk Mitigation Owner
1 Compliance/KYC constraints on no‑account issuance Use risk‑based thresholds and issuer exemptions for low‑value awards; monitor velocity, apply step‑up verification only when triggered; secure Compliance sign‑off and audit trails. Compliance
2 Fraud/abuse via magic‑links or stolen emails Expiring, single‑use magic‑links; device binding; optional work‑SSO; velocity limits; anomaly detection; clear recovery path. Security + Engineering
3 Employer payroll integration complexity for fallback Offer tiers: CSV/export spec, SFTP drop, or partner payroll apps; provide supermarket e‑voucher fallback where payroll is unavailable. Partnerships + Customer Success
4 Merchant acceptance quirks (pay‑at‑pump, 3DS, MCC blocks) drive declines Configure MCC allowlist, publish do/don’t guidance, default to kiosk for fuel, ensure 3DS support, expose status page and rapid support. Product (Payments) + Issuer Ops
5 Cost overrun from activation incentives and SMS Run A/B tests with caps; measure cost per incremental activation; throttle to cohorts where ROI > target. Finance + Product (Growth)
6 Perception of performative rewards (resentment vs. fairness) Provide choice (cash/time/card), transparent criteria templates, team credit options, and protected‑time scheduling with cover. Customer Success (HR Enablement)

Timeline

  • 0–30 days: Comms kit (email/SMS + manager script), split‑tender microcopy, sender domain hardening, KPI dashboards MVP; set award floor/bundling policy; launch reminder cadence.
  • 30–60 days: Wallet pass with balance/expiry; magic‑link add; support window + status page; begin A/B on £5 Day‑7 top‑up.
  • 60–90 days: Physical fallback pre‑activated; acceptance test matrix; decline telemetry; HR admin choice module (beta).
  • 90–120 days: Auto‑convert fallback (payroll/voucher/time‑off) + employer webhooks; privacy/trust copy; expand retailer partnerships.
  • 120–180 days: Optimize incentives based on ROI; roll fairness toolkit; tighten POS success to <1% first‑attempt declines; breakage <2%.
Research Study Narrative

Objective and context

Perx Rewards commissioned this qualitative programme to understand what drives employees to value, use, and engage with employer‑funded prepaid reward cards, and how to increase uptake and same‑week spend. Across seven prompts (c.20 respondents each) and a synthesis of 130 responses, we explored format preferences, activation friction, behavioural motivation, and what makes recognition feel meaningful rather than transactional.

What employees value vs. what gets in the way

  • Cash or protected time off are the defaults that feel respectful and useful. In the £100 scenario, 18/20 preferred cash for flexibility and budgeting fit (“Cash. No contest.” – Kelly Murphy). A paid day off can outrank cash for a vocal minority-if it’s easy to book and truly backfilled (Candice Petersen).
  • Prepaid Mastercards beat single‑store vouchers but are widely described as “faffy.” All 20 referenced activation hoops, expiry rules and stranded balances as value‑eroding (Maeve O’Connor). Single‑store vouchers are least popular unless aligned to supermarkets/fuel (20/20).
  • Motivation limits: a quarterly £150 prepaid card is a “nice perk” but rarely shifts behaviour (20/20); fairness risks are high without transparent criteria. Behavioural thresholds tend to start ~£300–£500/quarter for cash; many would prefer one protected day per quarter.

Adoption mechanics: how to make prepaid behave like cash

  • Activation friction is the single biggest barrier (20/20). Forced account creation/KYC and scam‑like flows cause abandonment and forgetfulness.
  • Wallet‑native, pre‑activated delivery drives same‑week use. One‑tap Add to Apple/Google Wallet with visible balance and clear expiry was the top accelerator (Kelly Murphy; Adam Collins). Locked physical cards often become “drawer clutter,” though a small segment prefers tactile cards if truly ready‑to‑use.
  • Reliability and clarity prevent embarrassing declines. Broad merchant acceptance (supermarkets, fuel) and smooth split‑tender are essential (18/20); public declines permanently deter future use (Declan Murphy).
  • Amount and nudges matter. Under ~£30 is often ignored; £50–£100 is the sweet spot for quick spend. Three simple reminders (Day 3/7/12) with live balance and a small, time‑limited top‑up nudge were favoured.

Persona correlations

  • Frontline shift workers: Strong cash/supermarket/fuel preference; any activation step is a tax on time. Fairness across shifts is critical.
  • Caregivers: Protected, pre‑approved time off can beat small cash; value rests on guaranteed cover and no “make‑up hours.”
  • Digital professionals: Accept prepaid only if frictionless (one‑tap wallet, no new app/KYC), with optional sweep‑to‑bank.
  • Mid/high‑income and managers: Emphasise transparent criteria, structural fixes, and development opportunities alongside cash/time.
  • Remote/rural and older lower‑income: Prefer payroll cash or long‑expiry, trusted formats; city‑centric experiences underperform.

Product and programme recommendations

  • Ship wallet‑first, no‑account activation: Pre‑activated cards via magic‑link to Apple/Google Wallet; balance and expiry on‑pass. Offer an opt‑in pre‑activated physical fallback for non‑smartphone users (addresses tactile preference outliers).
  • Confidence at checkout: Enable key MCCs (supermarkets/fuel), publish split‑tender and pay‑at‑pump guidance, and monitor first‑attempt decline rate.
  • Comms kit that looks legitimate: Known‑sender, one‑line message at the moment of praise naming the action and amount, plus a 3‑touch reminder cadence with live balance. Keep values ≥£50; bundle small awards.
  • Fairness and choice by default: Let employers default to cash/paid time with a frictionless opt‑in to card; include team‑credit templates and protected‑time scheduling.
  • Fail‑safe conversion: If unused by Day 14, one‑click auto‑convert to payroll credit, major grocer e‑voucher, or bankable paid‑time token.

Risks and mitigations

  • Compliance/KYC: Use low‑value thresholds with step‑up only on risk triggers.
  • Fraud on magic‑links: Single‑use links, device binding, velocity limits.
  • Merchant quirks: MCC allowlisting, 3DS support, status page and playbooks.

Next steps and measurement

  • 0–30 days: Launch comms kit; set award floor (≥£50); publish split‑tender tips; stand up KPI dashboards.
  • 30–60 days: Release wallet pass with on‑pass balance/expiry and magic‑link add; start Day 3/7/12 nudges; A/B a £5 activation top‑up.
  • 60–90 days: Pre‑activated physical fallback; acceptance test matrix; decline telemetry; fairness/choice admin beta.
  • 90–120 days: Auto‑convert fallback (payroll/grocer/time‑off) + employer webhooks.

KPIs: Activation ≤14 days ≥90%; Spend‑through ≤14 days ≥85%; Median time‑to‑first‑use <3 days; First‑attempt POS declines <1%; 90‑day breakage <2%.

Recommended Follow-up Questions Updated Feb 03, 2026
  1. Rank the following notification methods by how likely you would be to trust and act on a reward card message: 1) manager message in company chat, 2) HR email from company domain, 3) SMS from verified company sender ID, 4) Apple/Google Wallet pass push, 5) email from a third-party rewards brand, 6) posted letter with a QR code.
    rank Optimises sender/channel choices for the comms kit to reduce phishing concerns and increase open and activation rates.
  2. You will see features a prepaid reward could include. For each set, pick the one that most and least increases your likelihood to activate and spend within 72 hours. Features: pre-activated card; Add to Apple/Google Wallet; balance and expiry visible; usable at supermarkets and pay-at-pump; split-tender support; no fees and 12+ month expiry; instant PIN view; ability to top up own funds; live chat help at checkout; auto-convert unused after 14 days to payroll.
    maxdiff Prioritises the feature roadmap for fastest activation and early spend.
  3. Please provide the maximum or minimum you find acceptable for each policy: a) minimum expiry period (months), b) maximum monthly inactivity fee (GBP), c) maximum one-time activation/issuance fee (GBP), d) minimum reward amount that makes a 2-minute online activation worth doing (GBP).
    matrix Sets pricing and policy guardrails (expiry, fees, minimum denomination) without harming uptake.
  4. Which places would you be most likely to spend an employer prepaid reward within the first week? Select all that apply: groceries/supermarkets; fuel/petrol; online marketplaces; utilities/bills; pharmacy/health; clothing; DIY/home improvement; restaurants/takeaway; transport/travel; entertainment/subscriptions.
    multi select Informs merchant acceptance priorities and partnership messaging to drive first-week spend.
  5. How comfortable would you be providing the following to activate and use a prepaid reward, and with these uses of your data? Rate each: email address; mobile number; home address; date of birth; photo ID check; employer ID only; sharing anonymised spend categories with employer; sharing individual transaction details with employer; receiving marketing from provider; using data only for fraud prevention.
    matrix Guides KYC and data-use design to minimise drop-off and build trust.
  6. If some balance remains unused after 30 days, what would you prefer happens by default? Choose one: auto-refund to payroll; auto-convert to your chosen supermarket e-voucher; auto-donate to a chosen charity; keep on card with reminders; ask me each time.
    single select Selects a fail-safe policy that reduces breakage while respecting employee preferences.
Study Overview Updated Feb 03, 2026
Research question: What drives employees to value, use, and engage with employer-funded prepaid reward cards versus cash, store vouchers, or paid time off, and how can activation friction be removed to improve uptake. Research group: 20 UK employees (frontline retail/warehousing, office/digital, and carers; ages 28–58) provided 140 responses across seven prompts.

What they said: Across roles, cash or protected paid time off is preferred for flexibility, immediacy, and respect; prepaid Mastercards are “faffy” due to activation hoops, short expiries, fees, and stranded balances, with the single biggest non-use driver being activation friction + mistrust. Digital works when it’s one‑tap into Apple/Google Wallet, pre‑activated, balance/expiry visible, split‑tender capable, and accepted at supermarkets/petrol; locked physical cards often become “drawer clutter.” Fairness and specificity matter: generic praise and a quarterly £150 prepaid prize rarely change behaviour (most say it won’t); real levers are ~£250–£500 cash/quarter via payroll or a ring‑fenced paid day off.

Takeaways for product and HR: Default to cash or bankable paid time off with a simple opt‑in to a card; if issuing cards, make them wallet‑first, pre‑activated, long‑dated (12–24 months), fee‑free, supermarket/fuel‑friendly, and split‑tender with clear, trusted comms plus two short nudges. Set a meaningful floor (≥£50, ideally £100), show live balance/expiry in‑wallet, and add a 14‑day fail‑safe that auto‑converts unused value to payroll or a major‑grocer e‑voucher to effectively guarantee redemption. Measure and de‑risk: track 14‑day activation/spend, first‑use decline rate, and breakage; publish acceptance guidance and provide fast human support so one failed transaction doesn’t kill trust.