When it comes to consumer rewards and incentive programs, the way you pay matters a lot more than you might think.

A recent internal survey from a 25-year client and major U.S. telecommunications provider revealed a compelling insight: when given the choice between receiving a Prepaid Visa® card/Gift Card or a bill credit as part of a promotional reward, 94% of customers chose the prepaid card or gift card. Only 6% opted for the bill credit, a strong enough signal that the company is now considering eliminating the bill credit option altogether in future offers.

This data speaks volumes about what today’s consumers value in reward experiences, and it reinforces what we at Group O have long observed across numerous programs and industries: flexible, cash-like rewards consistently outperform more limited alternatives.

 Why Prepaid Visa Is the Preferred Choice

Here are a few reasons why consumers gravitate toward prepaid options over bill credits:

1. Flexibility

Prepaid Visa cards can be used anywhere Visa is accepted, whether online or in-store. That freedom empowers consumers to choose how they benefit from their reward; whether it's buying groceries, filling up the tank, or splurging on something fun.

Bill credits, by contrast, only reduce a future payment. While practical, they lack the immediacy and emotional impact of a tangible reward.

2. Perceived Value

A $100 prepaid card feels like a gift. A $100 bill credit often feels like a discount. Though the value is technically the same, perception plays a powerful role in customer satisfaction and engagement. Prepaid cards feel like a win.

3. Immediacy and Visibility

Consumers often forget about bill credits or don’t notice them when they show up on the next invoice. Prepaid cards are a physical or digital asset in the consumer’s hand, making the reward experience more visible and memorable.

4. Psychological Spendability

Many consumers already have their monthly bills budgeted. A credit toward a utility or telecom bill doesn’t free up new spending power—it simply reduces a known obligation. Prepaid cards, on the other hand, are mentally categorized as “extra money” that can be used on wants rather than needs. That makes them far more emotionally satisfying, which in turn makes the reward more effective.

What This Means for Your Incentive Programs

If you're offering rewards to drive customer acquisition, retention, or loyalty—how you deliver those rewards could be the key difference between a forgettable program and one that builds real brand equity.

As an incentive marketing partner to large enterprise clients for over a quarter of a decade, Group O has seen firsthand how reward choice impacts results. From consumer promotions to small business incentive programs, we’ve helped organizations test and optimize reward strategies to maximize customer satisfaction and ROI.

Our experience confirms what this survey shows: cash-equivalent, flexible rewards drive stronger engagement.

Design Better Reward Programs With Group O

Whether you're evaluating reward types, delivery methods, or overall incentive strategy, Group O can help. We offer:

• Physical and digital prepaid cards and disbursement options (Visa, Mastercard, PayPal, Venmo, and more)
• Custom program websites and tracking
• Dedicated support from your own customer success manager
• Performance analytics and optimization recommendations
• Comprehensive call center and digital support services

Let us help you build a reward program that not only works—but wows your customers.

Want to know more about how reward type influences redemption and customer loyalty? Let’s talk. Reach out to our incentive marketing team today. 

About the Author

Mark Josephs is the Vice President of Sales for Incentive Marketing Solutions at Group O, where he leads business development efforts across a wide range of industries including fintech, telecom, manufacturing, automotive, and consumer goods. With over two decades of experience in corporate incentive and prepaid programs, Mark specializes in driving growth through strategic solutions such as employee engagement, channel incentives, consumer promotions, loyalty programs, disbursements, and rebates. He combines a deep understanding of incentive marketing with strong financial acumen to help clients maximize ROI, streamline payment delivery, and build lasting customer and partner relationships. Known for his consultative approach and commitment to service, Mark plays a key role in delivering measurable results through Group O’s end-to-end incentive platforms and data-driven strategies..