(CNBC) — Millennials, the generation weighed down with student loans that abhors taking on more debt, are embracing a once-derided financial product: Prepaid debit cards.
A third of Americans 18-34 years old have used a reloadable prepaid debit card compared with only a quarter of Americans overall, according to a new survey by TD Bank. And 60 percent of millennials would consider using one compared with half of the overall population.
"These cards are much more mainstream than many people think," said Tami Farrow, TD Bank's head of retail deposit payment products.
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One reason: They've cleaned up their act. Prepaid debit cards used to be notorious for charging high fees, including several prepaid cards promoted by celebrities, such as Justin Bieber and Kim Kardashian. But criticism from consumer advocates—and cheaper offerings from American Express and Chase in recent years—put pressure on the bad actors to lower fees or leave the market, McBride said.
