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Prepaid Cards - Global Market Trajectory & Analytics

  • ID: 2564198
  • Report
  • February 2022
  • Region: Global
  • 691 Pages
  • Global Industry Analysts, Inc

FEATURED COMPANIES

  • American Express Company
  • Edenred S.A.
  • MasterCard, Inc.
  • The Bancorp Bank
  • Travelex Group Limited
  • Wal-Mart Stores, Inc.

Global Prepaid Cards Market to Reach US$2.7 Trillion by the Year 2026


Prepaid cards are a form of payment cards with stored value but with no link to an external account at a bank. These cards were initially launched as more effective replacements for food coupons and paper-based gift certificates. 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.

Amid the COVID-19 crisis, 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. 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.

Select Competitors (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.
Frequently Asked Questions about the Global Market for Prepaid Cards

What is the estimated value of the Global Market for Prepaid Cards?

The Global Market for Prepaid Cards was estimated to be valued at $1.6 Trillion in 2020.

What is the growth rate of the Global Market for Prepaid Cards?

The growth rate of the Global Market for Prepaid Cards is 9.1%, with an estimated value of $2.7 Trillion by 2026.

What is the forecasted size of the Global Market for Prepaid Cards?

The Global Market for Prepaid Cards is estimated to be worth $2.7 Trillion by 2026.

Who are the key companies in the Global Market for Prepaid Cards?

Key companies in the Global Market for Prepaid Cards include American Express Company, Blackhawk Network Holdings, Inc., Caxton FX Limited, Edenred S.A., Green Dot Corporation, MasterCard, Inc., MetaBank, Inc., Mint Technology Corporation and The Bancorp Bank.

FEATURED COMPANIES

  • American Express Company
  • Edenred S.A.
  • MasterCard, Inc.
  • The Bancorp Bank
  • Travelex Group Limited
  • Wal-Mart Stores, Inc.

I. METHODOLOGY


II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW

  • Impact of COVID-19 Pandemic and Looming Global Recession: 2020 Marked as a Year of Disruption & Transformation
  • As the Race between the Virus & Vaccines Intensifies, Where is the World Economy Headed in 2021?
  • World Economic Growth Projections (Real GDP, Annual % Change) for 2020 through 2022
  • 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: Global Volume of Non-Cash Transactions (In Billion) for the Years 2018, 2020 & 2022
  • 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
  • Prepaid Cards – Global Key Competitors Percentage Market Share in 2022 (E)
  • Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2022 (E)
  • 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
  • Share of Prepaid in the Overall Payments by Geographic Region: 2019
  • 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
  • World Prepaid Cards Market by Region: Percentage Breakdown of Gross Value for Developed and Developing Regions (2021 & 2027)
  • World Prepaid Cards Market - Geographic Regions Ranked by CAGR (Value) for 2020-2027: China, Asia-Pacific, Latin America, Canada, Middle East, USA, Europe, Japan and Africa
  • Analysis by Segment
  • World Prepaid Cards Market by Type (2021 & 2027): Percentage Breakdown of Gross Value for Closed Loop and Open Loop
  • 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

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
  • Global Breakdown of Unbanked Adult Population (in %) by Country for 2019
  • Global Breakdown of Unbanked Adult Population (in %) by Gender for 2019
  • Top Factors Cited as Barrier to Account Ownership: % of Adults Citing the Reason for Being Unbanked
  • Urban Sprawl Encourages a Positive Tide
  • World Urban Population in Million and as Percentage of Total Population for the Period 1950-2050P
  • 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
  • Global B2C E-Commerce Sales in US$ Trillion for the Years 2019, 2020, 2021, 2022, 2023, 2024 and 2025
  • Retail M-Commerce Sales as % of Retail E-commerce Sales Worldwide for the Years 2016, 2018, 2020 & 2022
  • Pandemic Fast Forwards eCommerce Growth
  • Global B2C e-Commerce Market Reset & Trajectory - Growth Outlook (In %) For Years 2019 Through 2025
  • 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?
  • Global Department Stores Market Reset & Trajectory - Growth Outlook (In %) For Years 2019 Through 2025
  • 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. MARKET ANALYSIS

UNITED STATES

  • Prepaid Cards Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United States for 2022 (E)
  • Market Overview
  • 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

JAPAN

  • Prepaid Cards Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Japan for 2022 (E)
  • Market Overview

CHINA

  • Prepaid Cards Market Presence - Strong/Active/Niche/Trivial - Key Competitors in China for 2022 (E)
  • 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

  • Prepaid Cards Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Europe for 2022 (E)
  • Market Overview
  • Focus Shifts to Regulations and Industry Practices in wake of Growing Misuse of Prepaid Cards

FRANCE

  • Prepaid Cards Market Presence - Strong/Active/Niche/Trivial - Key Competitors in France for 2022 (E)

GERMANY

  • Prepaid Cards Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Germany for 2022 (E)

ITALY

  • Market Overview

UNITED KINGDOM

  • Prepaid Cards Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United Kingdom for 2022 (E)
  • Market Overview
  • UK Gift Card and Vouchers Market by Customer Type (2013, 2015, 2017, 2019, & 2021): Percentage Breakdown of Value Sales for Consumer and B2B
  • UK Consumer Gift Card and Vouchers Market by Retail Channel (2019): Percentage Breakdown of Value Sales for In-Store and Others
  • UK B2B Gift Card and Vouchers Market by Retail Channel (2019): Percentage Breakdown of Value Sales for Direct and Others

SPAIN


RUSSIA


REST OF EUROPE

ASIA-PACIFIC

  • Prepaid Cards Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Asia-Pacific for 2022 (E)
  • Asia-Pacific: A Diversified Market for Prepaid Cards
  • Open Loop Transport-Prepaid Cards to Witness Growth

AUSTRALIA

  • Prepaid Cards Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Australia for 2022 (E)
  • Market Overview

INDIA

  • Prepaid Cards Market Presence - Strong/Active/Niche/Trivial - Key Competitors in India for 2022 (E)
  • Market Overview
  • 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

SOUTH KOREA

  • Market Overview

REST OF ASIA-PACIFIC

LATIN AMERICA

  • Prepaid Cards Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Latin America for 2022 (E)
  • Market Overview

ARGENTINA

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

MEXICO


REST OF LATIN AMERICA

MIDDLE EAST

  • Prepaid Cards Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Middle East for 2022 (E)
  • Market Overview

IRAN


ISRAEL


SAUDI ARABIA

UNITED ARAB EMIRATES

  • Market Overview

REST OF MIDDLE EAST

AFRICA

  • Prepaid Cards Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Africa for 2022 (E)
  • Africa: A Mix of Developed and Underdeveloped Markets
  • South Africa

IV. COMPETITION

  • Total Companies Profiled: 259

A selection of companies mentioned in this report includes:

  • 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.