Closed Loop Prepaid Cards Market Report 2026

The closed loop prepaid cards market size has grown rapidly in recent years. It will grow from $2.44 billion in 2025 to $2.69 billion in 2026 at a compound annual growth rate (CAGR) of 10.2%. The growth in the historic period can be attributed to growth of retail gift card programs, increasing use of prepaid cards for incentives, expansion of organized retail networks, rising adoption of cashless payment methods, increasing brand-led payment ecosystems.

The closed loop prepaid cards market size is expected to see rapid growth in the next few years. It will grow to $3.97 billion in 2030 at a compound annual growth rate (CAGR) of 10.2%. The growth in the forecast period can be attributed to expansion of digital wallets and mobile commerce, rising demand for personalized customer rewards, growing integration of prepaid cards with loyalty platforms, increasing focus on secure closed-loop transactions, wider adoption of prepaid cards in corporate programs. Major trends in the forecast period include increasing use of digital closed-loop payment ecosystems, rising adoption of e-gift and mobile-based prepaid cards, expansion of loyalty and incentive card programs, growing integration with retail analytics platforms, enhanced focus on fraud prevention and transaction security.

The growing adoption of digital payments is anticipated to drive the expansion of the closed-loop prepaid card market moving forward. Digital payments involve electronic transactions where buyers and sellers exchange value through digital channels such as mobile apps, online platforms, or point-of-sale systems instead of cash. This increase is driven by consumers’ preference for fast and convenient transaction methods that enable seamless purchases without relying on cash or physical cards. Closed-loop prepaid cards facilitate digital payments by providing a secure, reloadable option that integrates easily with mobile wallets and digital platforms, making everyday transactions more convenient. For example, in January 2024, the European Central Bank reported that contactless card payments in the first half of 2023 rose by 24.3% from 20.9 billion in the same period in 2022, with the total transaction value increasing by 25.9% to €0.5 trillion ($545.27 billion). Thus, the rising adoption of digital payments is fueling growth in the closed-loop prepaid cards market.

Key players in the closed-loop prepaid cards market are concentrating on creating advanced solutions such as application programming interface (API)-based transaction technologies to improve integration with merchant systems and provide seamless user experiences. API-based transaction technology enables smooth communication between software systems, allowing real-time payment processing while enhancing speed, flexibility, and scalability in digital financial operations. For instance, in April 2025, SwiftPay Guru, an India-based tech company, launched a closed-loop payment system designed specifically for retail businesses. This innovation allows retailers to develop their own branded digital wallets and prepaid cards that are usable only within their store networks. The solution helps retailers improve customer experience, gain deeper insights into purchasing behaviors, and boost profitability by enabling faster transactions, removing third-party fees, and incorporating loyalty features within a fully controlled, in-house payment ecosystem.

In May 2023, TOTUS, a US-based gift card issuer and program manager, acquired the gift card consultancy division of Powerhouse Brands Consulting for an undisclosed sum. This acquisition is aimed at strengthening TOTUS’s presence in the closed-loop prepaid market, expanding its end-to-end gift card services, and enhancing its capacity to support retail partners in launching and managing proprietary prepaid ecosystems. Powerhouse Brands Consultancy is a US-based firm specializing in consulting for closed-loop gift card programs.

Major companies operating in the closed loop prepaid cards market are Walmart Inc., Amazon.com Inc., Exxon Mobil Corporation, Apple Inc., Verizon Communications Inc., Starbucks Corporation, Fiserv Inc., Blackhawk Network Holdings Inc., InComm Payments Inc., Marqeta Inc., CPI Card Group Inc., The Bancorp Bank National Association, Netspend Corporation, Qwikcilver Solutions Private Limited, Zaggle, Novatti Group Limited, Huuray A/S, Wpay Pty Limited, Digital Reload, SwiftPay Guru Private Limited.

North America was the largest region in the closed loop prepaid cards market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the closed loop prepaid cards market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the closed loop prepaid cards market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The closed-loop prepaid cards market consists of revenues earned by entities by providing services such as issuing and managing prepaid cards, processing closed-loop transactions, fund loading and reloading, fraud prevention and security monitoring, and personalization and customization services. The market value includes the value of related goods sold by the service provider or included within the service offering. The closed-loop prepaid cards market also includes sales of gaming wallet cards, restaurant prepaid cards, fuel cards, transit cards, and loyalty program cards. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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