Global Prepaid Cards Market Report 2022-2026: Virtual Prepaid Payment Cards - The Next Generation of Prepaids

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Mar 07, 2022, 13:00 ET

DUBLIN, March 7, 2022 /PRNewswire/ -- The "Prepaid Cards - Global Market Trajectory & Analytics" report has been added to ResearchAndMarkets.com's offering.

Global Prepaid Cards Market to Reach US$2.7 Trillion by the Year 2026

The global market for Prepaid Cards estimated at US$1.6 Trillion in the year 2020, is projected to reach a revised size of US$2.7 Trillion by 2026, growing at a CAGR of 9.6% over the analysis period.

While still a young industry, prepaid cards are gradually evolving into mainstream market driven by wider acceptance and favorable attributes. Prepaid gift cards are increasingly becoming a part of core employee engagement and reward strategies in various business entities.

Governments, particularly in the US, are focusing on disbursing wages, distributing benefits and making other payments through prepaid cards, which not only depict their versatility but also potential growth the market has in offing. Retailers are increasingly selling these cards to improve customer loyalty, brand awareness and increase footfalls, driving sales of prepaid cards.

Prepaid travel cards are witnessing increasing popularity as safe and convenient alternative to traveler checks, further contributing to growth in the market. Another growth driver is e-commerce sales as consumers can use prepaid cards instead of credit or debit cards for making purchases online.

Closed Loop, one of the segments analyzed in the report, is projected to grow at a 9.3% CAGR to reach US$1.7 Trillion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Open Loop segment is readjusted to a revised 10% CAGR for the next 7-year period.

This segment currently accounts for a 42% share of the global Prepaid Cards market. Closed Loop prepaid cards are the most basic types of prepaid cards that emerged as a replacement for conventional gift certificates and hence are generally referred to as merchant gift cards. Closed Loop prepaid cards are mainly merchant specific and can be accepted for transactions exclusively at a predetermined merchant`s location.

Open Loop prepaid cards, also known as network-branded prepaid cards, differ from Closed Loop prepaid cards in terms of their endorsement by major retail electronic payment networks and their wider acceptability at all locations where these networks are accepted. These cards are generally reloadable, which allow cardholders to deposit additional funds to the card in case the previously loaded amount is spent.

The U.S. Market is Estimated at $612.7 Billion in 2021, While China is Forecast to Reach $382.8 Billion by 2026

The Prepaid Cards market in the U.S. is estimated at US$612.7 Billion in the year 2021. The country currently accounts for a 36.09% share in the global market.

China, the world`s second largest economy, is forecast to reach an estimated market size of US$382.8 Billion in the year 2026 trailing a CAGR of 13.2% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 7.6% and 9.3% respectively over the analysis period.

Within Europe, Germany is forecast to grow at approximately 8.8% CAGR while Rest of European market (as defined in the study) will reach US$433.4 Billion by the end of the analysis period. The US has been at the forefront of prepaid card adoption.

Growth in the market is supported by factors such as rise in demand for prepaid products, increase in online shopping and anticipated improvement in economic outlook against the backdrop of growth in key macroeconomic indicators post COVID pandemic.

Increasingly, governments, retailers, corporate enterprises and others outside the US are realizing the benefits of these cards in enhancing revenues and providing better customer service, driving its adoption.

Key Topics Covered:

I. METHODOLOGY

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW

COVID-19: A Panic Button for Banks & Fintechs and Boon for Cashless Payments & Prepaid Cards
Global Efforts to Go Cashless Provides Policy Led Support for the Evolution of Digital Banking
Spurred by the Pandemic & Its Low Touch Norm, Rapid Progress Towards a Cashless Society Provides Opportunities on a Platter for Digital Banking Technologies & Services
Pandemic Portends Noteworthy Transition towards Prepaid & Payroll Cards
Interesting Array of Contactless Payment Trends in Wake of COVID-19
Strategies Implemented by Billers to Support Customer Payments
A Prelude to Prepaid Cards
Comparison between Credit Card, Debit Card and Prepaid Card
Market Segments
Types of Prepaid Cards
Advantages and Disadvantages of Prepaid Cards
Global Market Prospects & Outlook
Addressing the Needs of the Unserved/Underserved: A Major Market Driver
Improved Efficiencies and Transparency Drives Inclusion of Prepaid Cards in Commercial Programs
Breaking Barriers to Ensure Broader Uptake of Digital Payments among Consumers
Key Growth Factors
Key Market Restraints
Analysis by Geographic Region
Competitive Scenario
An Insight into the Prepaid Card Value Chain
Prepaid Value Chain: Role and Revenue Driver by Category
Evolving Prepaid Value Chain amidst Changing Environment
Recent Market Activity
Select Global Brands

2. FOCUS ON SELECT PLAYERS (Total 259 Featured)

American Express Company
Blackhawk Network Holdings, Inc.
Caxton FX Limited
Edenred S.A.
Green Dot Corporation
MasterCard, Inc.
MetaBank, Inc.
Mint Technology Corporation
Recharge.com Enterprise B.V.
The Bancorp Bank
The Western Union Company
Travelex Group Limited
Visa, Inc.
Wal-Mart Stores, Inc.
WEX, Inc.

3. MARKET TRENDS & DRIVERS

Prepaid Cards: A Brighter Prospect in Cards amid Growing Digital Payments
COVID-19 Catalyzes Adoption of Digital Payments
Banks Go the Prepaid Way
Unbanked and Underbanked Consumers: Evolving as a Potential Market
Urban Sprawl Encourages a Positive Tide
Prepaid Eye the Upmarket
Gaining Popularity among Millennials
Consumer Shift from Cash to Card Based Purchase Transactions Propels Demand
Robust Rise of e-Commerce & m-Commerce to Support Market Growth
Pandemic Fast Forwards eCommerce Growth
Market Gains from Increased Retailer Acceptance of Card Based Payments
Virtual Prepaid Payment Cards: Next Generation of Prepaid
Prepaid Cards Offer Stiff Competition to Debit Cards
Prepaid Payroll Cards Expected to Witness Robust Growth
Retailer Specific-Prepaid Cards Gain Popularity in Developed Markets
Impact of Pandemic on Retail & Restaurant Industries: What's the New Normal?
Innovations Sustain Growth in Gift Cards Market
Retailers Eye Gift Cards to Build Loyal Customers
Growing Focus on Employee Rewards & Recognition to Spur Demand for Gift Cards
Why Companies Bet on Employee Rewards & Recognition?
Gift Cards: A Compelling Employee Reward Option
Advantages of Gift Cards for Employee Rewards & Recognition Program
Cohesive and Innovative Strategies: Key to Success of Gift Card Programs in Retail
Ease of Handling Drives Use of Digital Gift Cards for Incentives and Rewards Applications
Gift-Giving Etiquette Ingrained Into Our Culture Provides the Cornerstone for the Growth of the Gift Card Industry
Omni-channel Shopping is Here to Stay
Prepaid Travel Cards Grab Eyeballs
Fueled by High Uptake and Technological Progress, Prepaid Cards Hold Rosier Future
Chip Technology Makes Way into Prepaid Cards for Enhanced Security
Prepaid Cards Provides Hope for Better Travel Insurance Services
Challenges & Issues
Dearth of Consumer Awareness: A Major Challenge
High and Non-Standard Fees - A Major Hindrance to Growth
Need for Regulatory Tabs
Increasing Frauds and Abetting Criminal Activity - The Achilles' Heel of Prepaid Cards Business

4. GLOBAL MARKET PERSPECTIVE

III. REGIONAL MARKET ANALYSIS

UNITED STATES

Banks Eyeing Prepaid Debit Cards
Payroll and General Purpose Reloadable Prepaid Cards Gain Prominence
Growing Preference for Payroll Cards among Employers
Consumer Profile for Gift Cards
Innovation Drives Prepaid-Gift Cards Adoption
Multi-Channel Presence Expands Growth Opportunities for Gift Cards
Third Party Providers Get More Creative
New Services Improve Appeal of Prepaid Cards
FinCEN Presses for New Regulations to Control Money Laundering and Drug Trafficking
Prepaid Cards Slow to Switch to EMV
New Rules to Offer Better Protection to Prepaid Card User on the Anvil
Lack of Transparency and Other Issues Limit Market Growth
Competitive Scenario
US Prepaid Cards Market: List of Popular Prepaid Cards
Competition and Regulations Make Market Environment Tough for Players
Small Players Make Rapid Inroads in to Prepaid Card Business
Industry Consolidation on the Cards

CANADA

Increasing Demand for Prepaid Cards Draws Big Banks into the Ambit
Key Consumer Protection Laws Regulating Gift Cards in Canada

CHINA

Extended Growth Opportunities to Global Players
Travel Cards Gain Consumer Preference
Prepaid Cards under the Purview of Stringent Regulations
Money Loss Issues Threaten Growth of Prepaid Cards

EUROPE

Focus Shifts to Regulations and Industry Practices in wake of Growing Misuse of Prepaid Cards

ASIA-PACIFIC

Asia-Pacific: A Diversified Market for Prepaid Cards
Open Loop Transport-Prepaid Cards to Witness Growth

INDIA

Future Appears Brighter with Surge in Gift and Transport Cards
Growing Popularity of Gift Cards
Fast Growing Market Attracts Overseas Players
Growth-Restricting Factors
New Guidelines Set for Governing Prepaid Card-Digital Transactions

BRAZIL

Brazil Sees Surge in Popularity and Adoption of Prepaid Cards
Non-Metro Cities in Brazil to Witness Increased Adoption of Prepaid Cards in the Years Ahead

IV. COMPETITION

For more information about this report visit https://www.researchandmarkets.com/r/h4nt8i

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