The COVID-19 pandemic is reshaping the prepaid card industry.
As store closures hobble the mighty J-hook, and related trends push prepaid card users into the digital realm, these cash-loyal consumers find themselves choosing their card over cash and coins - and while short-term payment value pain hits most segments of the prepaid card market, long-term interchange fee revenue gains are in the making.
Of course, card type and other growth factors help shape the longer-term outcome: B2B prepaid cards, for example, continue their growth tear, while the proliferation of app-based prepaid digital accounts pressures consumer general-purpose reloadable prepaid card growth.
Overall, the publisher expects the prepaid card market to grow by a healthy 6% average annual rate from 2020 to 2024.
Prepaid Cards in the U.S., 7th Edition provides insight into significant near-term and longer-term factors shaping this varied and growing card segment. More specifically, this report:
Provides a market size and forecast for the prepaid card market, including trended payment value for general use (open-loop) and private label (closed-loop) prepaid cards, by card type, with related growth opportunity analysis
Assesses in detail the effects of the COVID-19 pandemic on the prepaid card industry, including cash conversion, payment electronification, interchange, and deposits, as well as effects by card type
Gauges (reloadable and non-reloadable) prepaid card use trends during 2014-2019, breaking prepaid card use down by card network; banked status; credit score; cash preference; and app and smartphone use
Identifies top general-purpose prepaid card brand and card network brands, by demographic
studies reasons for choosing general-purpose reloadable prepaid cards, including use cost; overdraft fee avoidance and debt management; credit and bank account substitution; breadth of acceptance; and reloading method
Explores prepaid card marketer and issuer strategies, including those of Axos Financial, The Bancorp Bank, Green Dot, MetaBank and Netspend
Analysis includes competitive positioning, new product introductions, company innovations, and trended performance analysis.
Heavy emphasis is placed on add-value proprietary estimates for load value, purchase value, and other metrics otherwise not published by these industry participants.
Thorough analysis of the app-based digital banking threat is also included.
Explores a variety of prepaid card industry challenges and solutions, including regulatory issues, pricing, and profit factors, broadening the target audience, bank account competition, and fraud
Green Dot Corporation
The Bancorp, Inc.
Key Topics Covered
1. Executive Summary
Market Size and Forecast
Coronavirus Pandemic Impact on the Prepaid Card Industry
App-Based Digital Banking Threatens GPR Prepaid Industry
Prepaid Card Use Trends
General-Purpose Reloadable Prepaid Card Feature and Use Rationales
Prepaid Card Marketer and Issuer Strategies
2. Market Size and Forecast
U.S. Prepaid Card Market Size and Forecast
Payment Value to Reach $377 Billion in 2020
2024 Payment Value Forecasted at $475.3 billion
"Open-Loop" Prepaid Card Market Size, by Card Type
"Closed-Loop" Prepaid Card Market Size, by Card Type