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Prepaid Cards in the U.S., 7th Edition

  • ID: 5116894
  • Report
  • June 2020
  • Region: United States
  • 121 Pages
  • Packaged Facts
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FEATURED COMPANIES

  • Axos Financial
  • Green Dot Corporation
  • MetaBank
  • Netspend
  • The Bancorp, Inc.
  • MORE

The COVID-19 pandemic is reshaping the prepaid card industry. As store closures hobble the mighty J-hook, and related trends push prepaid card users into the digital realm, these cash-loyal consumers find themselves choosing their card over cash and coins. And while short-term payment value pain hits most segments of the prepaid card market, long-term interchange fee revenue gains are in the making. Of course, card type and other growth factors help shape the longer-term outcome: B2B prepaid cards, for example, continue their growth tear, while the proliferation of app-based prepaid digital accounts pressures consumer general-purpose reloadable prepaid card growth. Overall, the publisher expects the prepaid card market to grow by a healthy 6% average annual rate from 2020 to 2024.

Prepaid Cards in the U.S., 7th Edition, provides insight into significant near-term and longer-term factors shaping this varied and growing card segment. More specifically, this report:

  • Provides a market size and forecast for the prepaid card market, including trended payment value for general use (open-loop) and private label (closed-loop) prepaid cards, by card type, with related growth opportunity analysis
  • Assesses in detail the effects of the COVID-19 pandemic on the prepaid card industry, including cash conversion, payment electronification, interchange, and deposits, as well as effects by card type
  • Gauges (reloadable and non-reloadable) prepaid card use trends during 2014-2019, breaking prepaid card use down by card network; banked status; credit score; cash preference; and app and smartphone use
  • Identifies top general-purpose prepaid card brand and card network brands, by demographic
  • studies reasons for choosing general-purpose reloadable prepaid cards, including use cost; overdraft fee avoidance and debt management; credit and bank account substitution; breadth of acceptance; and reloading method
  • Explores prepaid card marketer and issuer strategies, including those of Axos Financial, The Bancorp Bank, Green Dot, MetaBank and Netspend
  • Analysis includes competitive positioning, new product introductions, company innovations, and trended performance analysis.
  • Heavy emphasis is placed on add-value proprietary estimates for load value, purchase value, and other metrics otherwise not published by these industry participants.
  • Thorough analysis of the app-based digital banking threat is also included.
  • Explores a variety of prepaid card industry challenges and solutions, including regulatory issues, pricing, and profit factors, broadening the target audience, bank account competition, and fraud
Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • Axos Financial
  • Green Dot Corporation
  • MetaBank
  • Netspend
  • The Bancorp, Inc.
  • MORE

Executive Summary

  • Report Scope
  • Report Summary
  • Market Size and Forecast
  • Coronavirus Pandemic Impact on the Prepaid Card Industry
  • App-Based Digital Banking Threatens GPR Prepaid Industry
  • Prepaid Card Use Trends
  • General-Purpose Reloadable Prepaid Card Feature and Use Rationales
  • Prepaid Card Marketer and Issuer Strategies

Market Size and Forecast

  • U.S. Prepaid Card Market Size and Forecast
  • Payment Value to Reach $377 Billion in 2020
  • Table U.S. Prepaid Card Market Size, 2016-2020
  • 2024 Payment Value Forecasted at $475.3 billion
  • Table U.S. Prepaid Card Market Size, 2016-2020
  • "Open-Loop" Prepaid Card Market Size, by Card Type
  • Table U.S. Open-Loop Prepaid Card Market Size: By Type, 2016-2020
  • "Closed-Loop" Prepaid Card Market Size, by Card Type
  • Table U.S. Closed-Loop Prepaid Card Market Size: By Type, 2016-2020
  • Growth Opportunity
  • Sideways/Down: Consumer General-Purpose Reloadable Prepaid Cards
  • Near-Term Declines; Long-Term Incremental Growth: Gift Cards
  • Strong Near-Term/Incremental Long-Term Growth: Government Prepaid Cards
  • Moderate-to-Strong Growth: Healthcare Cards
  • Near-Term Declines; Moderate-to-Strong Growth: Payroll Cards
  • Strong Growth: B2B Payments

Challenges and Opportunities

  • Coronavirus Pandemic Impact on the Prepaid Card Industry
  • General-Purpose Prepaid Card Spend to Take Discretionary & Non-Discretionary Hit
  • Near- and Long-Term: Prepaid Cardholder Cash Preferences to Give Way
  • Table Attitudes Toward Cash as Preferred Purchase Payment Method and Always Using Cash to Pay Bills, 2019 (general-purpose reloadable prepaid card vs. debit card vs. credit card users)
  • Table Attitudes Toward Cash as Preferred Purchase Payment Method and Always Using Cash to Pay Bills: General-Purpose Reloadable Prepaid Card Users by HH Income Bracket, 2019
  • Near- and Long-Term: In-Store Purchases Pressured and Online Purchases Benefit
  • Near- and Long-Term: The J-Hook Takes a Gut Punch
  • Near- and Long-Term: Interchange Wins
  • Near-Term: Stimulus Bump
  • Near-Term Winner: Government Benefits Programs
  • Near-Term Loser: Payroll Cards
  • Near-Term Loser: Tax Refund Cards
  • App-Based Digital Banking Threatens GPR Prepaid Industry
  • The Good: Prepaid Cards Adapt to Digital Banking World
  • The Spoiler? Fintech Marketers Undercut on Price and Deliver on Features
  • In Focus: Chime
  • Table Chime Account Fees, 2020
  • The Consequences

Prepaid Card Use Trends

  • General-Purpose Prepaid Card Use Trends: 2014-2019
  • Reloadable and Non-Reloadable Card Use Declines
  • Table General-Purpose Prepaid Card Use, 2014-2019 (reloadable vs. non-reloadable)
  • Lower-Income Adults Remain a Sweet Spot
  • Table General-Purpose Prepaid Card Use: By Age Bracket and HH Income Bracket, 2014-2019
  • Visa Leads Use but Mastercard Is Gaining Share
  • Table General-Purpose Prepaid Card Use Share by Card Network, 2014-2019
  • General-Purpose Reloadable Prepaid Card Use: 2014-2019
  • 18- to 34-Year-Olds as a Trouble Spot
  • Table General-Purpose Reloadable Prepaid Card Use Share by Age Bracket and HH Income Bracket, 2014-2019
  • Declines Are an Industry Trend, not a Network-Specific One
  • Table General-Purpose Reloadable Prepaid Card Use by Card Network, 2014-2019
  • General-Purpose Non-Reloadable Prepaid Card Use: 2014-2019
  • Middle-Income Traction
  • Table General-Purpose Non-Reloadable Prepaid Card Use: By Age Bracket and HH Income Bracket, 2014-2019
  • Table General-Purpose Non-Reloadable Prepaid Card Use by Card Network, 2014-2019
  • Bank Account, Smartphone, and Banking App Use Analysis
  • Table Bank Account, Smartphone, and Banking App Use: General-Purpose Reloadable Prepaid Card, Debit Card, and Credit Card Users (2014 vs. 2019)
  • General-Purpose Prepaid Card Brand and Card Network Brand Use
  • Overview
  • Table General-Purpose Prepaid Card Use by Card Brand/Network, 2018
  • Demographic Analysis
  • Table General-Purpose Prepaid Card Use by Card Brand/Network: By Age Bracket, 2018
  • Table General-Purpose Prepaid Card Use: By HH Income Bracket and Card Brand/Network, 2018
  • Table General-Purpose Prepaid Card Use by Card Brand/Network: By Credit Score, 2018
  • Table General-Purpose Prepaid Card Use: by Banked Status and Card Brand/Network, 2018

General-Purpose Reloadable Prepaid Card Feature and Use Rationales

  • General-Purpose Reloadable Prepaid Card Features Used
  • Table General-Purpose Reloadable Prepaid Card Features Used, 2018 vs. 2020 (percent of adults)
  • Money Movement and Payment Features: Demographic Analysis
  • Table General-Purpose Reloadable Prepaid Card Money Movement and Payment Features Used: By Age, 2020
  • Table General-Purpose Reloadable Prepaid Card Money Movement and Payment Features Used: By HH Income Bracket, 2020
  • Table General-Purpose Reloadable Prepaid Card Features Money Movement and Payment Features Used: By HH Income Bracket, 2020 (18-34 years old vs. 35+ years old)
  • Financial Management Features: Demographic Analysis
  • Table General-Purpose Reloadable Prepaid Card Financial Management Features Used: By Age Bracket, 2020
  • Table General-Purpose Reloadable Prepaid Card Financial Management Features Used: By HH Income Bracket, 2020
  • Table General-Purpose Reloadable Prepaid Card Financial Management Features Used: By HH Income Bracket, 2020 (18-34 years old vs. 35+ years old)
  • Reasons for Choosing Reloadable Prepaid Cards
  • Acceptance and No Fees Rule the Roost
  • Table Important Reasons for Choosing a Prepaid Card, 2018 vs. 2020
  • Influence of Direct Deposit on Card Use
  • Table Prepaid Card Reload, Monthly Fee, Withdrawal, and Purchase Behavior, 2018 vs. 2020
  • Table Prepaid Card Reload, Monthly Fee, Withdrawal, and Purchase Behavior: Direct Deposit vs. No Direct Deposit, 2020
  • Table Prepaid Card Reload, Monthly Fee, Withdrawal, and Purchase Behavior: By HH Income Bracket, 2020 (18-34 years old vs. 35+ years old)

Prepaid Card Marketer & Issuer Strategies

  • Axos Financial
  • Prepaid Card Programs
  • Table Axos Financial: General-Purpose Reloadable Prepaid Card Program Brands, Managers, and Networks, 2020
  • The Tax Man Cometh: H&R Block Prepaid Emerald Card and Related Products
  • The Card Leverages Ancillary Products to Grow
  • Table H&R Block Emerald Card: Active Cards, Deposits, and Revenue, with Per-Card Metrics, 2012-2016
  • H&R Block Revenue Trends Suggest Card Growth
  • Table H&R Block Revenue: Total, Refund Transfer, Emerald Card, and Emerald Advance, 2014-2019
  • Deposits Trends Suggest Emerald Card Growth
  • But Cardholder Engagement Remains a Struggle
  • Table Axos Financial, Inc. Prepaid Card Deposits: Q4 2015-2019 vs. Q1 2016-2020
  • Refund Advance Origination Trends Suggests Room to Grow
  • Table Axos Financial, Inc. Prepaid Card Deposits: Q4 2015-2019 vs. Q1 2016-2020
  • H&R Block Relationship Strongly Impacts Deposits
  • Table Axos Financial, Inc.: Number of Deposit Accounts by Type, 2013-2019
  • Prepaid Card Interchange Exemption Breach
  • The Bancorp, Inc.
  • Regional Lender and Prepaid Card Leader
  • Variety of Prepaid Card Programs, Program Managers, and Card Verticals
  • Table The Bancorp Bank: General-Purpose Reloadable Prepaid Card Program Brands, Managers, Networks, and Card Types, 2020
  • But Non-Prepaid Debit Fintech Partnerships Drive Growth
  • Table The Bancorp Bank: Non-Prepaid Debit Fintech Partnerships: By Name, Network Brand, and Launch Date, 2012-2020
  • And General-Purpose, Reloadable Cards Are Being Replaced
  • Healthcare a Bright Spot
  • Prepaid Card Deposits on the Rise
  • Table The Bancorp: Average Q4 Total and Prepaid Card Deposits, 2016-2019
  • Real-Time ACH Growth
  • Performance Trends
  • Table The Bancorp: Load Value and Selected Non-Interest Income Metrics, 2015-2019
  • Prepaid Card Growth Trends
  • Green Dot Corporation
  • Table Green Dot Consumer Product Features and Platform Capabilities, 2020
  • Market Segments
  • Operating Segments
  • Table Green Dot Operating Revenue by Segment, 2015-2019
  • Key Program Brands
  • Table Green Dot General-Purpose Reloadable Prepaid Card Program Brands and Networks, 2020
  • Table Green Dot General-Purpose Reloadable Prepaid Card Program Management-Only Brands and Networks, 2020
  • Key Relationship: Walmart
  • Table Green Dot Operating Revenue and Revenue Attributable to Walmart, 2015-2019
  • The Walmart MoneyCard
  • Stimulus Grab
  • Key Competitive Threat: Low-Cost App-Based Digital Banking
  • Key New Product: Unlimited by Green Dot
  • Key Service: BaaS
  • Key Performance Trends
  • Table Green Dot Active Cards, Cash Transfers, Load Value, Purchase Value, GPR Deposits, and Tax Refunds Processed, 2013-2019
  • Table Green Dot Active Cards, Cash Transfers, Load Value, Purchase Value, GPR Deposits, and Tax Refunds Processed: Percentage Annual Growth, 2014-2019
  • Key Revenue Trends
  • Table Green Dot Operating Revenue by Type, 2015-2019
  • Per-Card Revenue, Load Value, and Purchase Value Trends
  • Table Green Dot: Per-Card Prepaid Card Analysis: Revenue by Type, Load Value, and Purchase Value, 2015-2019
  • COVID Crunch
  • MetaBank
  • Card Brands and Segments
  • Table MetaBank General-Purpose Reloadable Prepaid Card Program Brands, Managers, and Networks, 2020
  • Table MetaBank Payroll Card Program Brands, Managers, and Networks, 2020
  • Table MetaBank Prepaid Card Program Brands, Managers, and Networks: By Card Type, 2020
  • Table MetaBank: Refund Transfer Fee and Tax Advance Metrics, 2016-2019
  • Performance Trends
  • Table MetaBank: Meta Payment Systems Deposit Analysis, 2015-2019
  • MPS Card Fee Income Stagnation and Decline
  • Table MetaBank: MPS Non-Interest Income, Card Fee, Deposit Fee, and Interchange Analysis, 2016-2019
  • Netspend
  • Overview
  • Competitive Positioning
  • Card Brands
  • Table Netspend Reloadable Prepaid Card Programs: Brands, Issuers, and Networks, and Card Types, 2020
  • Retail Distribution
  • Performance Trends
  • Table Netspend: Revenue, Active Cards, and Per-Card Revenue: By Revenue Stream and Direct Deposit Use, 2014-2019
  • Table Netspend Prepaid Card Load Value, 2014-2019
  • Debit Competition Affects Card Base and Masks Load Value Trends
  • Table Netspend: Active Cards and Load Value with Direct Deposit Share, 2014-2019
  • Direct Deposit Remains King
  • Table Netspend: Total and Per-Card Revenue and Load Value: By Card Direct Deposit Status, 2014-2019
  • COVID Crunch

Appendix

  • Methodology
  • Consumer Survey Methodology
  • Population Estimates
  • Prepaid Card Exemptions from Debit Card Interchange Limits
  • Abbreviations
  • Table Report Abbreviations, 2020
  • Terms and Definitions
Note: Product cover images may vary from those shown
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  • Axos Financial
  • Green Dot Corporation
  • MetaBank
  • Netspend
  • The Bancorp, Inc.
Note: Product cover images may vary from those shown
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