The “Prepaid Cards – Global Market Trajectory & Analytics” report has been added to ResearchAndMarkets.com’s offering.
Global Prepaid Cards Market to Reach US$2.7 Trillion by the Year 2026
The global market for Prepaid Cards estimated at US$1.6 Trillion in the year 2020, is projected to reach a revised size of US$2.7 Trillion by 2026, growing at a CAGR of 9.6% over the analysis period.
While still a young industry, prepaid cards are gradually evolving into mainstream market driven by wider acceptance and favorable attributes. Prepaid gift cards are increasingly becoming a part of core employee engagement and reward strategies in various business entities.
Governments, particularly in the US, are focusing on disbursing wages, distributing benefits and making other payments through prepaid cards, which not only depict their versatility but also potential growth the market has in offing. Retailers are increasingly selling these cards to improve customer loyalty, brand awareness and increase footfalls, driving sales of prepaid cards.
Prepaid travel cards are witnessing increasing popularity as safe and convenient alternative to traveler checks, further contributing to growth in the market. Another growth driver is e-commerce sales as consumers can use prepaid cards instead of credit or debit cards for making purchases online.
Closed Loop, one of the segments analyzed in the report, is projected to grow at a 9.3% CAGR to reach US$1.7 Trillion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Open Loop segment is readjusted to a revised 10% CAGR for the next 7-year period.
This segment currently accounts for a 42% share of the global Prepaid Cards market. Closed Loop prepaid cards are the most basic types of prepaid cards that emerged as a replacement for conventional gift certificates and hence are generally referred to as merchant gift cards. Closed Loop prepaid cards are mainly merchant specific and can be accepted for transactions exclusively at a predetermined merchant`s location.
Open Loop prepaid cards, also known as network-branded prepaid cards, differ from Closed Loop prepaid cards in terms of their endorsement by major retail electronic payment networks and their wider acceptability at all locations where these networks are accepted. These cards are generally reloadable, which allow cardholders to deposit additional funds to the card in case the previously loaded amount is spent.
The U.S. Market is Estimated at $612.7 Billion in 2021, While China is Forecast to Reach $382.8 Billion by 2026
The Prepaid Cards market in the U.S. is estimated at US$612.7 Billion in the year 2021. The country currently accounts for a 36.09% share in the global market.
China, the world`s second largest economy, is forecast to reach an estimated market size of US$382.8 Billion in the year 2026 trailing a CAGR of 13.2% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 7.6% and 9.3% respectively over the analysis period.
Within Europe, Germany is forecast to grow at approximately 8.8% CAGR while Rest of European market (as defined in the study) will reach US$433.4 Billion by the end of the analysis period. The US has been at the forefront of prepaid card adoption.
Growth in the market is supported by factors such as rise in demand for prepaid products, increase in online shopping and anticipated improvement in economic outlook against the backdrop of growth in key macroeconomic indicators post COVID pandemic.
Increasingly, governments, retailers, corporate enterprises and others outside the US are realizing the benefits of these cards in enhancing revenues and providing better customer service, driving its adoption.
Key Topics Covered:
I. METHODOLOGY
II. EXECUTIVE SUMMARY
1. MARKET OVERVIEW
- COVID-19: A Panic Button for Banks & Fintechs and Boon for Cashless Payments & Prepaid Cards
- Global Efforts to Go Cashless Provides Policy Led Support for the Evolution of Digital Banking
- Spurred by the Pandemic & Its Low Touch Norm, Rapid Progress Towards a Cashless Society Provides Opportunities on a Platter for Digital Banking Technologies & Services
- Pandemic Portends Noteworthy Transition towards Prepaid & Payroll Cards
- Interesting Array of Contactless Payment Trends in Wake of COVID-19
- Strategies Implemented by Billers to Support Customer Payments
- A Prelude to Prepaid Cards
- Comparison between Credit Card, Debit Card and Prepaid Card
- Market Segments
- Types of Prepaid Cards
- Advantages and Disadvantages of Prepaid Cards
- Global Market Prospects & Outlook
- Addressing the Needs of the Unserved/Underserved: A Major Market Driver
- Improved Efficiencies and Transparency Drives Inclusion of Prepaid Cards in Commercial Programs
- Breaking Barriers to Ensure Broader Uptake of Digital Payments among Consumers
- Key Growth Factors
- Key Market Restraints
- Analysis by Geographic Region
- Competitive Scenario
- An Insight into the Prepaid Card Value Chain
- Prepaid Value Chain: Role and Revenue Driver by Category
- Evolving Prepaid Value Chain amidst Changing Environment
- Recent Market Activity
- Select Global Brands
2. FOCUS ON SELECT PLAYERS (Total 259 Featured)
- American Express Company
- Blackhawk Network Holdings, Inc.
- Caxton FX Limited
- Edenred S.A.
- Green Dot Corporation
- MasterCard, Inc.
- MetaBank, Inc.
- Mint Technology Corporation
- Recharge.com Enterprise B.V.
- The Bancorp Bank
- The Western Union Company
- Travelex Group Limited
- Visa, Inc.
- Wal-Mart Stores, Inc.
- WEX, Inc.
3. MARKET TRENDS & DRIVERS
- Prepaid Cards: A Brighter Prospect in Cards amid Growing Digital Payments
- COVID-19 Catalyzes Adoption of Digital Payments
- Banks Go the Prepaid Way
- Unbanked and Underbanked Consumers: Evolving as a Potential Market
- Urban Sprawl Encourages a Positive Tide
- Prepaid Eye the Upmarket
- Gaining Popularity among Millennials
- Consumer Shift from Cash to Card Based Purchase Transactions Propels Demand
- Robust Rise of e-Commerce & m-Commerce to Support Market Growth
- Pandemic Fast Forwards eCommerce Growth
- Market Gains from Increased Retailer Acceptance of Card Based Payments
- Virtual Prepaid Payment Cards: Next Generation of Prepaid
- Prepaid Cards Offer Stiff Competition to Debit Cards
- Prepaid Payroll Cards Expected to Witness Robust Growth
- Retailer Specific-Prepaid Cards Gain Popularity in Developed Markets
- Impact of Pandemic on Retail & Restaurant Industries: What’s the New Normal?
- Innovations Sustain Growth in Gift Cards Market
- Retailers Eye Gift Cards to Build Loyal Customers
- Growing Focus on Employee Rewards & Recognition to Spur Demand for Gift Cards
- Why Companies Bet on Employee Rewards & Recognition?
- Gift Cards: A Compelling Employee Reward Option
- Advantages of Gift Cards for Employee Rewards & Recognition Program
- Cohesive and Innovative Strategies: Key to Success of Gift Card Programs in Retail
- Ease of Handling Drives Use of Digital Gift Cards for Incentives and Rewards Applications
- Gift-Giving Etiquette Ingrained Into Our Culture Provides the Cornerstone for the Growth of the Gift Card Industry
- Omni-channel Shopping is Here to Stay
- Prepaid Travel Cards Grab Eyeballs
- Fueled by High Uptake and Technological Progress, Prepaid Cards Hold Rosier Future
- Chip Technology Makes Way into Prepaid Cards for Enhanced Security
- Prepaid Cards Provides Hope for Better Travel Insurance Services
- Challenges & Issues
- Dearth of Consumer Awareness: A Major Challenge
- High and Non-Standard Fees – A Major Hindrance to Growth
- Need for Regulatory Tabs
- Increasing Frauds and Abetting Criminal Activity – The Achilles’ Heel of Prepaid Cards Business
4. GLOBAL MARKET PERSPECTIVE
III. REGIONAL MARKET ANALYSIS
UNITED STATES
- Banks Eyeing Prepaid Debit Cards
- Payroll and General Purpose Reloadable Prepaid Cards Gain Prominence
- Growing Preference for Payroll Cards among Employers
- Consumer Profile for Gift Cards
- Innovation Drives Prepaid-Gift Cards Adoption
- Multi-Channel Presence Expands Growth Opportunities for Gift Cards
- Third Party Providers Get More Creative
- New Services Improve Appeal of Prepaid Cards
- FinCEN Presses for New Regulations to Control Money Laundering and Drug Trafficking
- Prepaid Cards Slow to Switch to EMV
- New Rules to Offer Better Protection to Prepaid Card User on the Anvil
- Lack of Transparency and Other Issues Limit Market Growth
- Competitive Scenario
- US Prepaid Cards Market: List of Popular Prepaid Cards
- Competition and Regulations Make Market Environment Tough for Players
- Small Players Make Rapid Inroads in to Prepaid Card Business
- Industry Consolidation on the Cards
CANADA
- Increasing Demand for Prepaid Cards Draws Big Banks into the Ambit
- Key Consumer Protection Laws Regulating Gift Cards in Canada
CHINA
- Extended Growth Opportunities to Global Players
- Travel Cards Gain Consumer Preference
- Prepaid Cards under the Purview of Stringent Regulations
- Money Loss Issues Threaten Growth of Prepaid Cards
EUROPE
- Focus Shifts to Regulations and Industry Practices in wake of Growing Misuse of Prepaid Cards
ASIA-PACIFIC
- Asia-Pacific: A Diversified Market for Prepaid Cards
- Open Loop Transport-Prepaid Cards to Witness Growth
INDIA
- Future Appears Brighter with Surge in Gift and Transport Cards
- Growing Popularity of Gift Cards
- Fast Growing Market Attracts Overseas Players
- Growth-Restricting Factors
- New Guidelines Set for Governing Prepaid Card-Digital Transactions
BRAZIL
- Brazil Sees Surge in Popularity and Adoption of Prepaid Cards
- Non-Metro Cities in Brazil to Witness Increased Adoption of Prepaid Cards in the Years Ahead
IV. COMPETITION
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