A prepaid card is a payment card, which allows users to make purchases with the preloaded amount stored in it. This prepaid amount then dictates the spending capacity of the card, such as debit or credit cards, but restricted by the loaded balance. Thus, prepaid cards are frequently used as budgeting tools, which enable people to better manage their finances and avoid overspending. Prepaid transactions have transitioned from simple paper vouchers to multi-purpose prepaid cards. This trend is expected to continue during the forthcoming years, owing to liquidity issues. Prepaid cards are commonly accepted worldwide as they are issued by major payment networks such as Visa, Mastercard, and American Express, thus serving as a suitable option while travelling and international transactions. In addition, the growth of the global prepaid card market is majorly driven by increase in unbanked and underbanked people seeking accessible financial solutions outside traditional banks. In addition, prepaid cards provide these people with a safe and simple means to manage their funds, conduct transactions, and participate in the economy without the requirement for a formal bank account. Furthermore, rise in demand for cash alternatives and availability of affordable and eco-friendly prepaid cards foster the growth of the market. In addition, multipurpose prepaid cards are gaining high traction among consumers who do not have access to other forms of electronic payments such as debit or credit cards, which acts as a key driving force of the global market. However, mobile payments have hampered the expansion of the prepaid card business by giving a digital alternative for purchases. Furthermore, increase in penetration of digital payment technologies is lowering the necessity for prepaid cards.
This competition is expected to hamper the demand for prepaid cards, particularly among tech-savvy customers who use mobile payment alternatives. Moreover, security issues and privacy concerns hamper the growth of the prepaid card market. On the contrary, surge in demand for prepaid cards from various developing countries is expected to offer lucrative opportunities for prepaid card driven by reasons such as inadequate banking infrastructure, increased digital use, and the need for accessible and secure financial services.
The global prepaid card market is segmented on the basis of offering, card type, end user, and region. By offering, it is classified into general-purpose reloadable card, gift cards, government benefit/disbursement card, incentive/payroll card, and others. By card type, the market is bifurcated into closed loop prepaid card and open loop prepaid card. By end user, the market analyzed across retail establishment, corporate, and government/public sector. By region, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the prepaid card market such as American Express Company, Green Dot Corporation, JPMorgan Chase And Co, Kaiku Finance LLC, Mango Financial, Inc., Mastercard, NetSpend Corporation, PayPal Holdings, Inc., Travelex Foreign Coin Services Limited, and Visa Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the prepaid card market.
This competition is expected to hamper the demand for prepaid cards, particularly among tech-savvy customers who use mobile payment alternatives. Moreover, security issues and privacy concerns hamper the growth of the prepaid card market. On the contrary, surge in demand for prepaid cards from various developing countries is expected to offer lucrative opportunities for prepaid card driven by reasons such as inadequate banking infrastructure, increased digital use, and the need for accessible and secure financial services.
The global prepaid card market is segmented on the basis of offering, card type, end user, and region. By offering, it is classified into general-purpose reloadable card, gift cards, government benefit/disbursement card, incentive/payroll card, and others. By card type, the market is bifurcated into closed loop prepaid card and open loop prepaid card. By end user, the market analyzed across retail establishment, corporate, and government/public sector. By region, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the prepaid card market such as American Express Company, Green Dot Corporation, JPMorgan Chase And Co, Kaiku Finance LLC, Mango Financial, Inc., Mastercard, NetSpend Corporation, PayPal Holdings, Inc., Travelex Foreign Coin Services Limited, and Visa Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the prepaid card market.
Key Benefits For Stakeholders
- The study provides in-depth analysis of the global prepaid card market along with the current & future trends to illustrate the imminent investment pockets.
- Information about key drivers, restrains, & opportunities and their impact analysis on the global prepaid card market size are provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
- The quantitative analysis of the global prepaid card market from 2022 to 2032 is provided to determine the market potential.
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Key Market Segments
By Offering
- Gift Cards
- Government Benefit/Disbursement Card
- Incentive/Payroll Card
- General Purpose Reloadable Card
- Others
By Card Type
- Closed Loop Prepaid Card
- Open Loop Prepaid Card
By End User
- Retail Establishments
- Corporate
- Government/Public sector
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
- Key Market Players
- Green Dot Corporation
- American Express Company
- Mastercard
- JPMorgan Chase And Co.
- Visa Inc.
- Travelex Foreign Coin Services Limited
- Mango Financial, Inc.
- PayPal Holdings, Inc.
- NetSpend Corporation
- Kaiku Finance LLC
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: PREPAID CARD MARKET, BY OFFERING
CHAPTER 5: PREPAID CARD MARKET, BY CARD TYPE
CHAPTER 6: PREPAID CARD MARKET, BY END USER
CHAPTER 7: PREPAID CARD MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, the prepaid card market was valued at $2.5 trillion in 2022, and is estimated to reach $14.37 trillion by 2032, growing at a CAGR of 19.5% from 2023 to 2032.The Prepaid card market is likely to experience a significant growth rate of 19.5% from 2022-2032 owing to increasing market demand from corporate and government/public sector
Prepaid cards were becoming more popular among consumers as they offered a convenient and secure way to manage finances, especially for those without traditional bank accounts. Prepaid card providers were increasingly offering contactless payment options and integrating with digital wallets and mobile apps to enhance convenience. Moreover, Prepaid cards were gaining popularity not only in North America but also in Europe, Asia, and other regions as they provided an alternative to traditional banking services. Furthermore, companies were offering personalized prepaid cards, allowing consumers to customize their cards with unique designs and features.One of the major drivers for the prepaid card market is the Rise in demand for cash alternatives. Prepaid cards provide an accessible alternative for people who do not have the appropriate papers or credit history to open a bank account. They can obtain and use prepaid cards without the requirements that banks frequently impose. Furthermore, prepaid cards are often not subject to credit checks, making them an appealing alternative for people with a weak or no credit history, this is especially important for the underbanked people. In addition, prepaid cards can be used by governments and organizations to provide social benefits, pensions, and other payments to those do not have bank accounts, this ensures that these people can access their assets in a secure and easy manner. Moreover, prepaid cards enable the unbanked and underbanked people to participate more actively in economic activities, save money, and prepare for the future by giving a tool for managing their finances. Therefore, the requirement for cash alternatives among underbanked and unbanked populations is a major driving factor of the prepaid card market.
However, repaid cards have become the fastest growing payment method owing to the evolution in the mode of electronic payment. This advanced payment method is prone to hacking, as currently these cards do not have enough security measures that can prevent payment frauds. Such security breaches leading to data loss and confidentiality breach of crucial information are possible since dozens of criminal hackers have started to exploit prepaid card systems as well as back-office systems, which are used by banks to manage their prepaid card products to facilitate online banking fraud. In addition, in a rush to make mobile prepaid card rollouts as convenient and low-cost as possible; companies such as Target and Starbucks have overlooked security holes, which allow any shopper to use the dollars loaded into other shoppers' prepaid cards. Moreover, criminals may use phishing emails, phone calls, or other ways to trick cardholders into disclosing important information, as customers' prepaid card information may be compromised if they fall prey to such practices. Therefore, security issues and privacy concerns are hampering the growth of the prepaid card market. On the contrary, the evolution of prepaid cards and vouchers has triggered the growth of the prepaid card market with on-going trend of self-consumption in the developing countries. The rising adoption of these cards for online purchases, traveling, and distribution among children as cash alternative also accelerates the growth of prepaid cards. Furthermore, individuals in developing countries are increasingly shopping online due to increasing penetration of e-commerce platforms.
The prepaid card market is segmented on the basis of offering, card type, end user, and region. By offering, it is classified into general-purpose reloadable card, gift cards, government benefit/disbursement card, incentive/payroll card, and others. By card type, the market is bifurcated into open closed loop prepaid card and open loop prepaid card. By end user, the market analyzed across retail establishments, corporate and government/public sector. By region, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the prepaid card market such as American Express Company, Green Dot Corporation, JPMorgan Chase And Co, Kaiku Finance LLC, Mango Financial, Inc., Mastercard, NetSpend Corporation, PayPal Holdings, Inc., Travelex Foreign Coin Services Limited, and Visa Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the prepaid card market.
Key Market Insights
By offering, the general-purpose reloadable card segment led the prepaid card market in terms of revenue in 2022.By card type, closed-loop prepaid card segment accounted for the highest prepaid card market share in 2022.
By end user, retail establishments segment accounted for the highest prepaid card market share in 2022.
By region, North America generated the highest revenue in 2022.
Companies Mentioned
- Green Dot Corporation
- American Express Company
- Mastercard
- JPMorgan Chase And Co.
- Visa Inc.
- Travelex Foreign Coin Services Limited
- Mango Financial, Inc.
- PayPal Holdings, Inc.
- NetSpend Corporation
- Kaiku Finance LLC
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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