United Kingdom Prepaid Card and Digital Wallet Business and Investment Opportunities Databook - Market Size and Forecast, Consumer Attitude & Behaviour, Retail Spend - Q1 2024 Update

According to the publisher, the prepaid card market (value terms) in United Kingdom increased at a CAGR of 8.0% during 2019-2023. Over the forecast period of 2024 to 2028, the market is expected to record a CAGR of 9.8%, increasing from US$43.91 billion in 2023 to reach US$71.16 billion by 2028.

The prepaid card market is poised to record strong growth over the medium term in the United Kingdom. Traditional financial institutions are launching innovative prepaid card solutions to take on new-age startups dominating the sector. Furthermore, businesses are also entering into strategic collaborations to launch new products, while seeking to tap into the growing market.

This trend, set to gain further momentum in 2024, will drive the competitive landscape in the fast-growing industry over the medium term. Prepaid payment instrument providers are also expected to raise funding rounds from venture capital and private equity firms in the United Kingdom in 2024. Overall, the publisher maintains a positive growth outlook for the industry over the next three to four years.

UK-based banking firm launches multi-currency debit card to take on popular fintech firms

With the likes of Revolut and Wise recording strong growth in the United Kingdom market, traditional banking institutions are also making a push into the sector, thereby driving the competitive landscape in 2024.

• HSBC, in 2024, is set to launch a payments app offering cheap foreign exchange to retail customers. The firm, in January 2024, announced that it would launch a multi-currency app and debit card. This will enable customers to hold 10 different currencies. Initially, the app and the debit card will be made available in the United Kingdom, with the bank planning to expand in other markets over the medium term. The move is part of the firm's strategy to compete with neobank and fintech firms that are soaring in popularity.

HSBC, notably, is not the only banking institution to foray into the fintech sector. JPMorgan, the US-based investment bank, also forayed into the digital banking market with the launch of Chase UK in 2021. HSBC entered the fintech market with a US$35 million investment in Monese in 2022. Now, with the new app and debit card launch, HSBC is seeking to further strengthen its position in the fast-growing fintech and prepaid card industry in the United Kingdom.

Firms are entering into strategic partnerships to power digital wallet offerings in the United Kingdom

Amid the growing competitive landscape in the prepaid card and digital wallet industry, businesses are entering into strategic collaborations to further strengthen their position in the sector in 2024.

• Samsung Electronics, in December 2023, partnered with Mastercard to introduce a new program called Wallet Express. This program offers a quick and affordable solution for banks and card issuers to enhance their digital wallet services. With Wallet Express, issuers can integrate Samsung Wallet into their services, giving customers various convenient payment options, including the use of Galaxy wearable devices. This collaboration aims to make digital payments more accessible and user-friendly for consumers.
• ClearBank, an embedded banking provider, also entered into a collaboration with LemFi in 2023. The partnership is aimed at powering LemFi’s e-wallet offering in the United Kingdom. ClearBank, as of September 2023, has provided 37,000 virtual accounts to LemFi’s customers. The monthly payment volume has gone up to 550,000 transactions in the month. Alongside the United Kingdom, LemFi has operations in Canada, Nigeria, and the United States. These collaborations come at a time when the use of digital wallets is rising rapidly for both in-store and online payments. Going forward, the publisher expects more such strategic collaborations in the sector.

UK-based fintech firms offering digital wallets are raising capital to expand internationally

With the sector poised for strong growth over the medium term in Europe and other global regions, UK-based firms are planning expansion over the medium term, and thus raising capital rounds.

• HyperJar, in September 2023, announced that the firm had raised US$24 million in its Series A funding round. The capital infusion has been led by Susquehanna Private Equity Investments. HyperJar, in the United Kingdom, offers digital wallets to more than half a million customers. Its product offering also includes prepaid card products for teens. Furthermore, the firm also has a presence in the B2B vertical, where it offers businesses access to tech for spending, transactions, and rewards. With the capital infusion, HyperJar is targeting global expansion across Europe, North America, and other markets.

From the short to medium-term perspective, the publisher expects more such fintech firms to raise funding from venture capital and private equity firms. This will support innovation and market growth over the next three to four years in the United Kingdom's prepaid card industry.

This report provides a detailed data centric analysis of prepaid payment instruments, covering spend through prepaid cards and digital wallets across retail and corporate consumer segments. In addition, it provides a snapshot of consumer behaviour and retail spend dynamics in United Kingdom. With over 100 KPIs at country level, this report provides comprehensive understanding of prepaid card and digital wallet card market dynamics.

• Market dynamics: Provides a comprehensive view on size and structure, industry dynamics, market trends, consumer attitude and behaviour, and competitive landscape in prepaid card and digital wallet industry.
• Digital wallet segments: Provides value, volume and average value per transaction across 5 key spend categories in digital wallet. This includes retail, travel, entertainment and gaming, restaurant, and recharge and bill payment.
• Open loop and closed loop prepaid cards: market estimates and forecasts to assess opportunities 12 open loop and closed loop prepaid market segments. Details four essential KPIs - number of cards in circulation, number of transactions, load value, and value of transactions.
• Virtual Prepaid Cards: Provides transaction value analysis across 12 key prepaid card catergories for Virtual Prepaid Cards.
• Detailed Market Share Analysis by Key Players in the Prepaid Card Market.
• Consumer attitude and behaviour: Drawing from proprietary survey results, this report identifies and interprets key prepaid KPIs, including spend by age, gender, and income level.
• Retail spend: Breaks down retail spend across 11 categories to provide detailed insights on consumer behaviour and changing dynamics of prepaid card spend.

Scope

This report provides a detailed data centric analysis of prepaid payment instruments, covering spend through prepaid cards and digital wallets across retail and corporate consumer segments. In addition, it provides a snapshot of consumer behaviour and retail spend dynamics in United Kingdom. With over 100 KPIs at country level, this report provides comprehensive understanding of prepaid card and digital wallet card market dynamics.

United Kingdom Prepaid Payment Instrument Market Size and Forecast

• Transaction Value Trend Analysis
• Transaction Volume Trend Analysis
• Average Value per Transaction

United Kingdom Digital Wallet Market Size and Forecast

• Transaction Value Trend Analysis
• Transaction Volume Trend Analysis
• Average Value per Transaction

United Kingdom Digital Wallet Market Size and Forecast by Key Segments

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

United Kingdom Digital Wallet Spend by Key Retail Categories

• Food and Grocery
• Health and Beauty Products
• Apparel and Foot Wear
• Books,Music and Video
• Consumer Electronics
• Pharmacy and Wellness
• Gas Stations
• Restaurants and Bars
• Toys, Kids and Baby Products
• Services
• Other Categories

United Kingdom 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

United Kingdom Open Loop Prepaid Card Future Growth Dynamics

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

United Kingdom Closed Loop Prepaid Card Future Growth Dynamics

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

United Kingdom Prepaid Card Market Share by Key Players

• General Purpose Prepaid Cards
• Business and Administrative Expense Prepaid Cards
• Travel Forex Prepaid Cards
• Meal Prepaid Cards

United Kingdom Prepaid Card Consumer Usage Trends

• By Age Group
• By Income Group
• By Gender

United Kingdom Prepaid Card Spend by Key Retail Categories

• Food and Grocery
• Health and Beauty Products
• Apparel and Foot Wear
• Books,Music and Video
• Consumer Electronics
• Pharmacy and Wellness
• Gas Stations
• Restaurants and Bars
• Toys, Kids and Baby Products
• Services
• Other Categories

United Kingdom General Purpose Prepaid Card Market Size and Forecast

United Kingdom 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

United Kingdom Entertainment and Gaming Prepaid Card Market Size and Forecast

United Kingdom 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

United Kingdom 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

United Kingdom 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

United Kingdom 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

United Kingdom 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

United Kingdom Transit and Tolls Prepaid Card Market Size and Forecast

United Kingdom Healthcare and Wellness Prepaid Card Market Size and Forecast

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

United Kingdom Fuel Prepaid Cards Market Size and Forecast

United Kingdom Utilities, and Other Prepaid Cards Market Size and Forecast

United Kingdom Virtual Prepaid Card Industry Market Attractiveness

• Transaction Value Trend Analysis
• Transaction Volume Trend Analysis
• Average Value per Transaction

United Kingdom Virtual Prepaid Card Market Size and Future Growth Dynamics by Key Categories

• General Purpose Prepaid Cards
• Gift Cards
• Entertainment and Gaming Prepaid Cards
• Teen and Campus Prepaid Cards
• Business and Administrative Expense Prepaid Cards
• Payroll Prepaid Cards
• Meal Prepaid Cards
• Travel Forex Prepaid Cards
• Transit and Trolls Prepaid Cards
• Social Security and Other Government Benefit Programs Prepaid Cards
• Fuel Prepaid Cards
• Utilities and Other Prepaid Cards

Reasons to buy

• In-depth understanding of prepaid card and digital wallet market dynamics: Understand market opportunity, industry dynamics, key trends and drivers across 75+ market segments and sub-segments of prepaid payment instrument,Prepaid Card, Digital Wallet and Virtual Prepaid Card in United Kingdom.
• Understand market opportunities and key trends along with forecast (2019-2028). Understand market dynamics through essential KPIs such as Transaction Value, Transaction Volume, and Average Value Per Transaction.
• Develop market specific strategies: Identify growth segments and target specific opportunities to formulate your prepaid card and digital wallet strategy; assess market specific key trends, drivers and risks in the industry.
• Detailed analysis of market share by key players across key Prepaid Card Categories.
• Get insights into consumer attitude and behaviour: Understand changing consumer attitude and behaviour and boost ROI. Get detailed insights into retail spend through prepaid cards, virtual prepaid cards and digital wallets.