United States Prepaid Cards Market 2020-2024: COVID-19 Pandemic Reshaping the Industry

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Jun 30, 2020, 07:15 ET

DUBLIN, June 30, 2020 /PRNewswire/ -- The "Prepaid Cards in the U.S., 7th Edition" report has been added to ResearchAndMarkets.com's offering.

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

Companies Mentioned

Axos Financial
Green Dot Corporation
MetaBank
Netspend
The Bancorp, Inc.

Key Topics Covered

1. Executive Summary

Report Scope
Report 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
Growth Opportunity
Sideways/Down: Consumer General-Purpose Reloadable Prepaid Cards
Near-Term Declines; Long-Term Incremental Growth: Gift Cards
Strong Near-Term/Incremental Long-Term Growth: Government Prepaid Cards
Moderate-to-Strong Growth: Healthcare Cards
Near-Term Declines; Moderate-to-Strong Growth: Payroll Cards
Strong Growth: B2B Payments

3. Challenges and Opportunities

Coronavirus Pandemic Impact on the Prepaid Card Industry
General-Purpose Prepaid Card Spend to Take Discretionary & Non-Discretionary Hit
Near- and Long-Term: Prepaid Cardholder Cash Preferences to Give Way
Near- and Long-Term: In-Store Purchases Pressured and Online Purchases Benefit
Near- and Long-Term: The J-Hook Takes a Gut Punch
Near- and Long-Term: Interchange Wins
Near-Term: Stimulus Bump
Near-Term Winner: Government Benefits Programs
Near-Term Loser: Payroll Cards
Near-Term Loser: Tax Refund Cards
App-Based Digital Banking Threatens GPR Prepaid Industry
The Good: Prepaid Cards Adapt to Digital Banking World
The Spoiler? Fintech Marketers Undercut on Price and Deliver on Features
In Focus: Chime
The Consequences

4. Prepaid Card Use Trends

General-Purpose Prepaid Card Use Trends: 2014-2019
Reloadable and Non-Reloadable Card Use Declines
Lower-Income Adults Remain a Sweet Spot
Visa Leads Use but Mastercard Is Gaining Share
General-Purpose Reloadable Prepaid Card Use: 2014-2019
18- to 34-Year-Olds as a Trouble Spot
Declines Are an Industry Trend, not a Network-Specific One
General-Purpose Non-Reloadable Prepaid Card Use: 2014-2019
Middle-Income Traction
Bank Account, Smartphone, and Banking App Use Analysis
General-Purpose Prepaid Card Brand and Card Network Brand Use
Overview
Demographic Analysis

5. General-Purpose Reloadable Prepaid Card Feature and Use Rationales

General-Purpose Reloadable Prepaid Card Features Used
Money Movement and Payment Features: Demographic Analysis
Financial Management Features: Demographic Analysis
Reasons for Choosing Reloadable Prepaid Cards
Acceptance and No Fees Rule the Roost
Influence of Direct Deposit on Card Use

6. Prepaid Card Marketer & Issuer Strategies

Axos Financial
Prepaid Card Programs
The Tax Man Cometh: H&R Block Prepaid Emerald Card and Related Products
The Card Leverages Ancillary Products to Grow
H&R Block Revenue Trends Suggest Card Growth
Deposits Trends Suggest Emerald Card Growth
But Cardholder Engagement Remains a Struggle
Refund Advance Origination Trends Suggests Room to Grow
H&R Block Relationship Strongly Impacts Deposits
Prepaid Card Interchange Exemption Breach
The Bancorp, Inc.
Regional Lender and Prepaid Card Leader
Variety of Prepaid Card Programs, Program Managers, and Card Verticals
But Non-Prepaid Debit Fintech Partnerships Drive Growth
And General-Purpose, Reloadable Cards Are Being Replaced
Healthcare a Bright Spot
Prepaid Card Deposits on the Rise
Real-Time ACH Growth
Performance Trends
Prepaid Card Growth Trends
Green Dot Corporation
Market Segments
Operating Segments
Key Program Brands
Key Relationship: Walmart
The Walmart MoneyCard
Stimulus Grab
Key Competitive Threat: Low-Cost App-Based Digital Banking
Key New Product: Unlimited by Green Dot
Key Service: BaaS
Key Performance Trends
Key Revenue Trends
Per-Card Revenue, Load Value, and Purchase Value Trends
COVID Crunch
MetaBank
Card Brands and Segments
Performance Trends
MPS Card Fee Income Stagnation and Decline
Netspend
Overview
Competitive Positioning
Card Brands
Retail Distribution
Performance Trends
Debit Competition Affects Card Base and Masks Load Value Trends
Direct Deposit Remains King
COVID Crunch

For more information about this report visit https://www.researchandmarkets.com/r/13bno4

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