What Has Been The Historical And Current Growth Of The Prepaid Card Market?
The prepaid card market has seen considerable growth due to a variety of factors.
• In the past few years, the size of the prepaid card industry has seen rapid expansion. Its growth rate, currently standing at a compound annual growth rate (CAGR) of 13.9%, is projected to escalate from $24.91 billion in 2024 to $28.37 billion in 2025. The increase recorded in the historic period can be linked to several factors including changes in regulatory frameworks, shifting consumer behaviour and preferences, economic circumstances, initiatives to promote financial inclusion, as well as partnerships and collaborations.
What Are the Future Growth Projections for the Prepaid Card Market?
The prepaid card market is expected to maintain its strong growth trajectory in upcoming years.
• Substantial expansion is predicted in the prepaid card market size over the next several years. The expectations are that it will reach $46.16 billion by 2029, exhibiting a compound annual growth rate (CAGR) of 12.9%.
The projected growth during this period can be ascribed to potential changes in regulations, changing consumer tastes, economic scenarios, initiatives for financial inclusion, and strategic collaborations. Notable trends projected in this phase encompass advanced security measures, environmentally-friendly and sustainable practices, inclusivity and accessibility, incorporation of digital wallets and compliance with regulations.
Which Factors Are Boosting Growth In The Prepaid Card Market?
The growth of the prepaid card market is being fuelled by the rising adoption of prepaid cards as an alternative to conventional bank cards. Prepaid cards function differently than standard bank cards as they are not linked to a bank's checking account or a credit union share draft account. Instead, these cards require users to load money onto the card before using. Recharge, an online prepaid payment firm based in the Netherlands, conducted a survey in May 2024 which revealed that 1 in 5 adults in the UK (an estimated 11.4 million people) use prepaid cards. This is a significant increase of 118% since the commencement of the cost-of-living crisis. Of these users, 34% (approximately 3.9 million) use prepaid cards to better manage their finances while 26% (about 3 million) use them to avoid incurring debt. The rising trend of prepaid card usage is anticipated to stimulate further growth in the prepaid card market during the forecasted period.
What Are The Major Segments Within The Prepaid Card Market?
The prepaid card market covered in this report is segmented –
1) By Type: General-Purpose Reloadable Card, Prepaid Gift Card, Government Benefit Card, Payroll Card, Other Types
2) By Card Type: Open Loop Prepaid Card, Closed Loop Prepaid Card
3) By Application: Retail Establishments, Corporate Institutions, Government, Other Applications
Subsegments:
1) By General-Purpose Reloadable Card: Travel Cards, Everyday Spending Cards, Digital Wallet Linked Cards
2) By Prepaid Gift Card: Retail Gift Cards, Restaurant Gift Cards, E-Gift Cards
3) By Government Benefit Card: Social Security Cards, Unemployment Benefit Cards, Food Assistance Cards
4) By Payroll Card: Corporate Payroll Cards, Small Business Payroll Cards
5) By Other Types: Health Savings Account (HSA) Cards, Student Cards, Incentive Or Rewards Cards
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Which Trends Are Expected To Transform The Prepaid Card Market?
In the prepaid card market, main corporations are initiating cutting-edge products such as Neokred to raise their market profitability. Neokred acts as a payments infrastructure facilitator, assisting firms to seamlessly introduce their banking solutions. For example, in July 2023, Giverly, a fintech company with a social impact focus from the US, kicked off Neokred. The card, in collaboration with Visa and Transcorp International, functions as a charitable payback platform, converting online purchases into generous donations that genuinely affect crucial humanitarian matters. The intent behind the card is to revolutionize the way people donate to charities and increase the tangible impact on the organizations they support.
Who Are the Key Players in the Prepaid Card Market?
Major companies operating in the prepaid card market include:
• Walmart Inc.
• JPMorgan Chase & Co.
• American Express Company
• Visa Inc.
• PayPal Holdings Inc.
• Truist Financial Corporation
• Mastercard Incorporated
• Regions Financial Corporation
• The Western Union Company
• Total System Services LLC
• Akimbo Financial Inc.
• Green Dot Corporation
• Republic Bank & Trust Company
• Pathward N.A.
• Insight Card Services Inc.
• NetSpend Holdings Inc.
• Rêv Worldwide Inc.
• FamZoo Inc.
• Prepaid2cash Holdings Inc.
• BBVA Compass Bancshares Inc.
• Kaiku Finance LLC
• Mango Financial Inc.
• Bluebird by American Express
• Prepaid Expense Card Solutions Inc.
• Achieve Financial Services LLC
• MovoCash Inc.
• Cashflows
What Is The Most Dominant Region In The Prepaid Card Market?
Asia-Pacific was the largest region in the prepaid card market in 2024. Western Europe was the second largest market in the global prepaid card market share. The regions covered in the prepaid card market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
