Dublin, July 21, 2020 (GLOBE NEWSWIRE) -- The "Prepaid Card Market by Card Type, Usage, End-user and Region: Global Opportunity Analysis and Industry Forecast, 2020-2027" report has been added to ResearchAndMarkets.com's offering.
According to the report, the prepaid card market was valued at $1.85 billion in 2019, and is projected to reach $5.51 trillion by 2027, growing at a CAGR of 14.9% from 2020 to 2027.
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.
Multipurpose prepaid cards are gaining traction among consumers who do not have access to other forms of electronic payments such as debit or credit cards. Moreover, rise in demand for cash alternatives and availability of affordable and energy-efficient prepaid cards drive the growth of the prepaid card market. In addition, developments in the e-commerce industry and increase in adoption of prepaid cards because of adding funds through multiple avenues fuel the growth of the market.
However, lack of standardization and fraudulent attacks hamper the growth of the market. Furthermore, an increase in unbanked and underbanked population is expected to provide lucrative opportunities for the growth of the prepaid card industry. According to the Federal Deposit Insurance Corporation (FDIC) in 2018, 6.5% of the U.S. households were unbanked, which indicates that 8.4 million U.S. households are still left in the economy to operate without bank account. Generally, this population opts for prepaid cards as these cards are safe, inexpensive, and essential banking substitutes to cater to their financial transaction needs.
North America is one of the key contributors to the prepaid card market, owing to large unbanked/undeserved population, rise in demand for travel cards, massive closed loop market, developed market for corporate and government programs, and increase in usage of prepaid cards, as substitutes for current accounts. The growth in analysis of large internet-enabled data sets, an increase in awareness of cards, ease of access, and developments in the e-commerce industry are expected to boost the prepaid card market trend in the region. Asia-Pacific consists of a large unbanked population, and multiple businesses are still run by the use of cash. However, an increase in penetration of Internet among rural areas of Asia-Pacific creates a lucrative opportunity for the prepaid card market growth.
The closed loop prepaid card segment is expected to garner a significant share during the forecast period. Increase in adoption of multi-purpose prepaid card by travelers, retailers, and students drives the growth of the prepaid card market in this segment. However, the open loop prepaid card segment is expected to grow at the highest rate during the forecast period, owing to numerous features such as low risk of frauds, easy accessibility, and low interest charges. This drives the growth of the open loop prepaid card market in this segment.
The key players profiled in the prepaid card market include American Express Company, BBVA Compass Bancshares, Inc., Green Dot Corporation, H&R Block Inc., JPMorgan Chase & Co., Kaiku Finance LLC., Mango Financial, Inc., NetSpend Holdings, Inc., PayPal Holdings, Inc., and UniRush, LLC. These key players have adopted strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations, to enhance their market penetration.
By card type, the closed loop prepaid card segment led the market, in terms of revenue in 2019.
By usage, the general-purpose reloadable card segment accounted for the highest prepaid card market share in 2019.
By region, North America generated the highest revenue in 2019.
Key Topics Covered
Chapter 1: Introduction
1.1. Report Description
1.2. Key Market Segments
1.3. Key Benefits
1.4. Research Methodology
Chapter 2: Executive Summary
2.1. CXO Perspective
Chapter 3: Market Landscape
3.1. Market Definition and Scope
3.2. Key Findings
3.2.1. Top Investment Pockets
3.2.2. Top Winning Strategies
3.3. Porter's Five Forces Analysis
3.4. Market Share Analysis/Top Player Positioning 2019
3.5. Market Dynamics
Chapter 4: Prepaid Card Market by Card Type
4.2. Closed Loop Prepaid Card
4.3. Open Loop Prepaid Card
Chapter 5: Prepaid Card Market by Usage
5.2. General-Purpose Reloadable Card
5.3. Gift Card
5.4. Government Benefits/Disbursement Card
5.5. Incentive/Payroll Card
Chapter 6: Prepaid Card Market by Industry Vertical
6.2. Retail Establishments
6.3. Corporate Institutions
6.5. Financial Institutions & Others
Chapter 7: Prepaid Card Market by Region
7.2. North America
Chapter 8: Company Profiles
8.1. American Express Company
8.2. BBVA Group
8.3. Green Dot Corporation
8.4. HRB Digital LLC
8.5. JPMorgan Chase & Co.
8.6. Kaiku Finance, LLC
8.7. Mango Financial, Inc.
8.8. Paypal Holdings Inc.
8.9. Total System Services, Inc. (Netspend)
8.10. Unirush, LLC
For more information about this report visit https://www.researchandmarkets.com/r/cp37ot
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