Closed Loop Prepaid Cards Market Report 2025

The closed-loop prepaid card market size has grown rapidly in recent years. It will grow from $2.2 billion in 2024 to $2.44 billion in 2025 at a compound annual growth rate (CAGR) of 10.7%. The growth during the historic period can be credited to the increasing adoption of cashless transactions, expanded use of retail loyalty programs, rising demand for secure payment methods, growth in corporate incentive programs, and enhanced financial inclusion efforts.

The closed-loop prepaid card market size is expected to see rapid growth in the next few years. It will grow to $3.61 billion in 2029 at a compound annual growth rate (CAGR) of 10.3%. In the forecast period, growth is expected to stem from rising demand for digital payment solutions, a growing preference for cashless transactions, increased integration with mobile wallets, expanding popularity of loyalty and rewards programs, and a stronger focus on customer loyalty initiatives. Key trends anticipated include advancements in mobile wallet integration, innovations in card-linked loyalty programs, closer integration with digital payment platforms, improvements in real-time transaction tracking, and developments in biometric authentication features.

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 players 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 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in closed-loop prepaid cards report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the closed-loop prepaid cards market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

A closed-loop prepaid card is a payment card preloaded with a fixed amount of money that can only be used at a specific retailer or a network of affiliated merchants. These cards operate exclusively within the issuing brand’s ecosystem and are commonly utilized as gift cards, store credits, or as part of loyalty programs. Closed-loop prepaid cards provide a secure, brand-specific method for making purchases within a controlled environment.

The primary categories of closed-loop prepaid cards include gift cards, incentive cards, payroll cards, travel cards, and others. A gift card is a prepaid card tied to a specific store, loaded with a set amount, and usable solely within the issuing merchant’s network to promote brand loyalty and marketing efforts. These cards are distributed through various channels, both online and offline, and serve a range of end-users such as retail, corporate, government, and others.

The closed-loop prepaid cards market research report is one of a series of new reports that provides closed-loop prepaid cards market statistics, including the closed-loop prepaid cards industry global market size, regional shares, competitors with the closed-loop prepaid cards market share, detailed closed-loop prepaid cards market segments, market trends, opportunities, and any further data you may need to thrive in the closed-loop prepaid cards industry. This closed-loop prepaid cards market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

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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