Europe Prepaid Card and Digital Wallet Market Intelligence and Future Growth Dynamics Databook - Q1 2026 Update

Policy-led digitisation of employee benefit prepaid programs (France as the reference market)

• Europe is seeing a policy-led push to move benefit instruments fully to digital prepaid formats, with France as the clearest example. France’s meal voucher reform proposals explicitly include a move toward full digitalisation by 1 January 2027, which affects how benefits are prepaid, accepted, reconciled, and audited.
• Digitisation reduces handling frictions for merchants and standardises the acceptance and settlement processes for issuers and acquirers, aligning benefit payments with broader retail digitisation and app-based payments.
• Competitive pressure should increase around acceptance enablement, compliance controls, and merchant servicing rather than basic card issuance. The shift is likely to intensify as implementation deadlines approach and more stakeholders align with “digital-only” operations.

Higher safeguarding and reporting standards for payments/e-money firms that support prepaid programs (UK)

• Supervisory requirements for payments and e-money firms are tightening, affecting the infrastructure that underpins many prepaid programs.
• The UK FCA’s PS25/12 sets out changes to safeguarding expectations and operational requirements (e.g., segregation, reconciliation discipline, and reporting), with implementation phased into 2026.
• Growth in consumer and business reliance on non-bank payment/e-money accounts increases the impact of firm failures and raises regulator focus on how customer funds are protected and evidenced.
• More costs and scrutiny will shift competitive advantage toward operators with mature treasury operations, strong auditability, and robust controls. Smaller program managers may face higher unit costs or partner more tightly with scaled providers.

Resilience planning is keeping card rails central, including prepaid, even as wallets expand (Nordics / Baltics)

• Authorities and market participants are developing contingency plans to ensure card payments can continue during disruptions.
• Sweden’s Riksbank has stated an objective to enable offline card payments for essential goods by 1 July 2026 during disruptions, and the Nordics/Estonia have also signalled offline card back-up planning.
• A high reliance on digital payments increases the systemic impact of connectivity outages or infrastructure incidents; contingency planning, therefore, prioritises methods that support the continuity of essential spending.
• This trend is likely to intensify as procurement and technical readiness requirements become more stringent. Prepaid programs used for controlled spend (e.g., benefits, disbursements) may increasingly be evaluated on their resilience and acceptance continuity.

Account-to-account regulation and instant payments are increasing competitive pressure on card-based value propositions (EU)

• EU policy is pushing faster, more standardised account-to-account payments, which changes how card-based products (including prepaid) must justify their value.
• The EU’s modernisation agenda for payment services (PSD3/PSR) advanced with the Council's position in 2025, and the EU has also communicated implementation steps under the Instant Payments Regulation (including price-parity rules for instant transfers versus regular transfers for relevant PSPs).
• Faster bank transfer rails, stronger fraud controls and clearer liability expectations can shift some use cases away from card-based flows where “speed” was a primary advantage, while cards remain strong where acceptance reach and chargeback frameworks matter.
• Expect differentiation to move toward use-case controls (spend rules, budgeting, tokenised provisioning, merchant category controls) and distribution channels (employers, platforms) rather than generic consumer prepaid propositions.

Consolidation of prepaid distribution platforms is reshaping how prepaid reaches consumers (Netherlands-based platform example)

• Distribution and aggregation platforms are consolidating, affecting pricing power, publisher/brand access, and cross-border expansion.
• Coda’s acquisition of Amsterdam-headquartered Recharge (described as a leading European prepaid payments platform) is a recent example of consolidation in prepaid distribution and digital content monetisation rails.
• Prepaid distribution is increasingly about scale in direct-to-consumer channels, publisher/brand integrations, and compliance-ready rails for gift cards/top-ups; acquisition is a route to accelerate footprint and category coverage.
• Consolidation is likely to continue where platforms can combine distribution reach with regulated payment infrastructure, potentially compressing margins for smaller distributors and increasing the importance of differentiated partnerships.

Competitive Landscape of the European Prepaid Card Market

• Europe’s prepaid market is currently split across benefits-linked prepaid (strongly shaped by national policy, e.g., France), B2B/virtual payment use cases, and prepaid distribution/top-up platforms serving cross-border digital commerce. France’s proposed move toward full digitalisation of meal vouchers by 2027 is a structural demand driver in a large benefits ecosystem.
• Regulatory tightening is also shaping competitive intensity, especially for issuers/program managers operating under e-money/payment institution frameworks. The UK FCA’s PS25/12 raises operational expectations for safeguarding and reporting, which changes cost structures and procurement requirements for prepaid programs.

Key Players and New Entrants

• Large European incumbents in specific-purpose prepaid (employee benefits) remain influential in multiple markets, and their strategies are increasingly tied to digital-only acceptance and operational simplification. The French reform pathway is directly relevant to how benefit issuers position product roadmaps and merchant enablement.
• New entrants are often not “licensed issuers” themselves but brands using program managers and regulated infrastructure partners to launch prepaid propositions faster. Partnerships like TransactPay with Setld Pay reflect this “prepaid-as-infrastructure” entry route, targeting fintechs and non-financial brands launching card programs.

Recent Launches and Partnerships

• Partnerships are increasingly focused on commercial payments and virtual card deployment, rather than solely on consumer reloadables. Edenred’s strategic partnership with Visa (announced in October 2025) is explicitly framed to accelerate innovation across benefits, mobility, and B2B payment solutions, with the Europe rollout scheduled for 2026.
• In terms of program infrastructure, TransactPay’s partnership with Setld Pay (September 2025) is positioned to simplify the launch of prepaid card programmes by providing integrated payments infrastructure. This reflects a competitive landscape in which infrastructure providers bundle speed-to-market and compliance.

Merger and Acquisitions

• M&A activity indicates strategic value in prepaid distribution platforms that already have cross-border reach and integrations. Coda’s completion of the Recharge acquisition (August 2025) is a direct example, described as expanding global reach in digital content monetisation and prepaid payments distribution.
• The implication is that consolidation is occurring around assets that combine (a) distribution scale and (b) regulated payment execution. This may reduce room for sub-scale aggregators and increase the importance of exclusive publisher/merchant relationships.

Anticipated Market Evolution (Next 2-4 Years)

• Competitive intensity is expected to rise as regulators push higher operating standards and enterprises demand stronger governance and reporting. The UK safeguarding changes illustrate how compliance requirements can become a commercial differentiator, influencing who wins large prepaid programs.
• At the same time, resilience planning (e.g., offline card acceptance initiatives in the Nordics) suggests that card rails will remain central for continuity scenarios. This supports prepaid use cases linked to essential spend and controlled disbursements, provided issuers and processors meet acceptance and resilience requirements.

Regulatory Changes (Last 12 Months)

• In the UK, the FCA published PS25/12 (August 2025) setting out changes to the safeguarding regime for payments and e-money firms, with staged implementation into 2026. This directly affects prepaid issuers and program managers operating through e-money frameworks.
• At the EU level, the Council published its position (June 2025) on a more modern payment services framework (PSD3/PSR), and the Commission communicated progress around instant payments requirements and pricing rules (October 2025). These are material regulatory drivers shaping fraud liability, transparency, and competitive dynamics across payment instruments, including prepaid propositions that compete with A2A rails.

Overview of Prepaid Cards and Digital Wallet Market

Prepaid Card Market Analysis

• Metrics Assessed: The study examines the prepaid card market through various lenses, including transaction value, transaction volume, average transaction value, load value, and the total number of cards in circulation.
• Card Types: A distinction is made between open-loop and closed-loop prepaid cards, providing insights into their respective market shares and growth trajectories.
• Usage Categories: The report segments the prepaid card market into various categories such as general-purpose cards, business and administrative expense cards, travel forex cards, and meal cards.
• Business Segmentation: Further segmentation is provided based on business size and type, including small-scale businesses, mid-tier businesses, enterprise-level businesses, government entities, and retail consumers.
• Sector-Specific Applications: The analysis extends to specific sectors utilizing prepaid cards, including transit and toll payments, healthcare and wellness services, social security and other government benefit programs, fuel purchases, utilities, and more.

Digital Wallet Market Insights

• Key Segments: The digital wallet market is dissected across five primary spending categories: retail shopping, travel, entertainment and gaming, dining establishments, and recharge and bill payments.
• Performance Metrics: For each segment, the report evaluates transaction value, transaction volume, and average transaction value, offering a granular view of consumer spending behaviors.
• Retail Spend Breakdown: An in-depth analysis is provided for retail spending via digital wallets, covering categories such as food and grocery, health and beauty products, apparel and footwear, books, music and video, consumer electronics, pharmacy and wellness, gas stations, restaurants and bars, toys, kids and baby products, services, and other miscellaneous categories.

Virtual Prepaid Card Market Segmentation

• Categories Analyzed: The virtual prepaid card market is segmented into key categories, including general-purpose cards, gift cards, entertainment and gaming cards, teen and campus cards, business and administrative expense cards, payroll cards, meal cards, travel forex cards, transit and toll cards, social security and other government benefit program cards, fuel cards, utilities, and other miscellaneous categories.
• Performance Evaluation: For each category, the report assesses transaction value, providing insights into the adoption and usage patterns of virtual prepaid cards across different consumer segments.

Consumer Usage Trends

The report delves into consumer behavior concerning prepaid cards, segmented by:

• Age Groups: Identifying usage patterns across different age demographics.
• Income Levels: Analyzing how income brackets influence prepaid card adoption and usage.
• Gender: Examining differences in usage trends between genders.

Report Scope

Prepaid Payment Instrument Market Size and Forecast

• Transaction Value Trend Analysis
• Transaction Volume Trend Analysis
• Average Value per Transaction
• Market Share Analysis by Prepaid Card vs. Digital Wallet

Digital Wallet Market Size and Forecast

• Transaction Value Trend Analysis
• Transaction Volume Trend Analysis
• Average Value per Transaction
• Market Share Analysis by Key Segments

Digital Wallet Market Size and Forecast by Key Segments

• Retail Shopping (Value, Volume, Avg. Value)
• Travel (Value, Volume, Avg. Value)
• Restaurant (Value, Volume, Avg. Value)
• Entertainment and Gaming (Value, Volume, Avg. Value)
• Recharge and Bill Payment (Value, Volume, Avg. Value)

Digital Wallet Retail Spend Dynamics

• Food and Grocery - Transaction Value
• Health and Beauty Products - Transaction Value
• Apparel and Foot Wear - Transaction Value
• Books, Music and Video - Transaction Value
• Consumer Electronics - Transaction Value
• Pharmacy and Wellness - Transaction Value
• Gas Stations - Transaction Value
• Restaurants & Bars - Transaction Value
• Toys, Kids, and Baby Products - Transaction Value
• Services - Transaction Value
• Others - Transaction Value

Prepaid Card Industry Market Attractiveness

• Load Value Trend Analysis
• Transaction Value Trend Analysis
• Transaction Volume Trend Analysis
• Average Value per Transaction
• Number of Cards
• Market Share Analysis by Functional Attributes - Open Loop vs. Closed Loop
• Market Share Analysis by Prepaid Card Categories

Open Loop Prepaid Card Future Growth Dynamics

• Transaction Value Trend Analysis
• Transaction Volume Trend Analysis
• Average Value per Transaction
• Number of Cards

Closed Loop Prepaid Card Future Growth Dynamics

• Transaction Value Trend Analysis
• Transaction Volume Trend Analysis
• Average Value per Transaction
• Number of Cards

Prepaid Card Consumer Usage Trends

• By Age Group
• By Income Group
• By Gender

Prepaid Card Retail Spend Dynamics

• Food and Grocery - Transaction Value
• Health and Beauty Products - Transaction Value
• Apparel and Foot Wear - Transaction Value
• Books, Music and Video - Transaction Value
• Consumer Electronics - Transaction Value
• Pharmacy and Wellness - Transaction Value
• Gas Stations - Transaction Value
• Restaurants & Bars - Transaction Value
• Toys, Kids, and Baby Products - Transaction Value
• Services - Transaction Value
• Others - Transaction Value

General Purpose Prepaid Card Market Size and Forecast

Gift Card Market Size and Forecast

Gift Card Market Size and Forecast by Functional Attribute

• By Open Loop Gift Card
• By Closed Loop Gift Card

Gift Card Market Size and Forecast by Consumer Segments

• By Retail Consumer Segment
• By Corporate Consumer Segment

Gift Card Market Share Analysis by Retail Categories

• Gift Card Market Share Analysis by Gifting Occasion
• Gift Card Market Share Analysis by Purchase Location

Entertainment and Gaming Prepaid Card Market Size and Forecast

Teen and Campus Prepaid Card Market Size and Forecast

Teen and Campus Prepaid Card Market Size and Forecast by Functional Attribute

• By Open Loop Teen and Campus Prepaid Card
• By Closed Loop Teen and Campus Prepaid Card

Business and Administrative Expense Prepaid Card Market Size and Forecast

Business and Administrative Expense Prepaid Card Market Size and Forecast by Consumer Segments

• By Small Scale Business Segment
• By Mid-Tier Business Segment
• By Enterprise Business Segment
• By Government Segment

Payroll Prepaid Card Market Size and Forecast

Payroll Prepaid Card Market Size and Forecast by Consumer Segments

• By Small Scale Business Segment
• By Mid-Tier Business Segment
• By Enterprise Business Segment
• By Government Segment

Meal Prepaid Card Market Size and Forecast

Meal Prepaid Card Market Size and Forecast by Consumer Segments

• By Small Scale Business Segment
• By Mid-Tier Business Segment
• By Enterprise Business Segment
• By Government Segment

Travel Forex Prepaid Card Market Size and Forecast

Travel Forex Prepaid Card Market Size and Forecast by Consumer Segments

• By Retail
• By Small Scale Business Segment
• By Mid-Tier Business Segment
• By Enterprise Business Segment
• By Government Segment

Transit and Tolls Prepaid Card Market Size and Forecast

Social Security and Other Government Benefit Programs Prepaid Card Market Size and Forecast

Fuel Prepaid Cards Market Size and Forecast

Utilities, and Other Prepaid Cards Market Size and Forecast

Virtual Prepaid Card Industry Market Attractiveness

• Transaction Value Trend Analysis
• Transaction Volume Trend Analysis
• Average Value per Transaction
• Market Share Analysis by Key Virtual Prepaid Card Categories

Virtual Prepaid Card Market Size by Key Categories

• General Purpose Prepaid Card - Transaction Value
• Gift Card - Transaction Value
• Entertainment and Gaming Prepaid Card - Transaction Value
• Teen and Campus Prepaid Card - Transaction Value
• Business and Administrative Expense Prepaid Card - Transaction Value
• Payroll Prepaid Card - Transaction Value
• Meal Prepaid Card - Transaction Value
• Travel Forex Prepaid Card - Transaction Value
• Transit and Tolls Prepaid Card - Transaction Value
• Social Security and Other Government Benefit Programs Prepaid Card - Transaction Value
• Fuel Prepaid Cards - Transaction Value
• Utilities, and Other Prepaid Cards - Transaction Value

Reasons to Buy

• In-depth understanding of Europe’s prepaid card and digital wallet market dynamics: Gain a structured view of market opportunity, operating models, and competitive dynamics across 80+ segments and sub-segments, spanning prepaid cards (open-loop and closed-loop), digital wallets, wallet-linked prepaid credentials, and virtual prepaid cards. Analysis focuses on how stored value is issued, funded, used, and regulated in Europe’s payments ecosystem.
• Understand Europe’s market opportunities and key trends with forward-looking forecasts (2021-2030): Assess historical performance and future outlook for prepaid cards and digital wallets using core KPIs such as transaction value, transaction volume, active users, and average transaction value, with clear separation between consumer and commercial use cases and wallet-based versus card-based spend.
• Develop Europe specific prepaid and digital wallet strategies: Identify high-growth segments and structurally resilient use cases to support market-entry, expansion, or optimisation strategies. Evaluate Europe-specific drivers, constraints, and risks, including regulation, macroeconomic conditions, and adoption patterns, to inform realistic, market-aligned strategic decisions.
• Detailed analysis of Europe’s market share by key players across prepaid and wallet categories: Understand competitive positioning through issuer and platform-level market share analysis across major prepaid card types, digital wallets, and virtual prepaid instruments. Coverage highlights how banks, fintechs, and wallet providers compete across funding sources, acceptance reach, and use case depth.
• Insights into Europe’s consumer attitudes and payment behaviour: Analyse how consumers use prepaid cards, virtual prepaid cards, and digital wallets for everyday spend, e-commerce, subscriptions, and controlled payments. Understand behavioural shifts, frequency of use, and value per transaction to support ROI optimisation, product design, and targeted go-to-market strategies.