MCP-7448: PREPAID CARDS - A GLOBAL STRATEGIC BUSINESS REPORT
April 15, 2016 - Increasing Demand for Convenient & Cost-Effective Electronic Payment Tools Drives the Prepaid Cards Market, According to a New Report by Global Industry Analysts, Inc.
GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Prepaid Cards market. The global market for Prepaid Cards is projected to reach US$3.1 trillion by 2022, driven by the growing need for financial inclusion of unbanked consumers, innovative and expanding card features, increasing online transactions, and rising demand for cost-effective and convenient electronic payment solutions.
Prepaid cards represent an innovative non-cash financial vehicle for payments, which are growing in popularity worldwide as a practical and unique alternative to conventional payment methods. A form of payment cards, prepaid cards have a stored value but are not linked to an external account at a bank. The ability of these cards to fill the gap left by debit and credit cards and provide an electronic payment solution for unbanked and underbanked consumers with no or less access to conventional banking services, is the key factor driving demand for prepaid cards. Increasing focus on financial inclusion of underbanked and unbanked consumers is driving the adoption of prepaid cards among business enterprises worldwide. Efficiency and transparency achieved by substituting conventional paper-based or cash payments with prepaid cards is driving their use in enterprises for payroll, healthcare payments and incentives among others. Governments across the globe are focusing on disbursing wages, distributing benefits and making other payments through prepaid cards. The growth in demand for prepaid cards is also driven by increasing popularity of prepaid gift cards, which are replacing conventional gift vouchers, providing consumers with tremendous flexibility and convenience in their operation. Prepaid travel cards are also witnessing increasing popularity as a safe and convenient alternative to traveler checks.
Efficiency related to risk management, safety, flexibility and immediate liquidity in addition to low processing costs are inherent benefits of prepaid cards, driving their adoption worldwide. Growing online activity and increasing use of internet for online shopping and bill payments are creating a strong business case for online transaction tools such as prepaid cards. Improving technologies and launch of new and innovative card designs based on season or occasion, or even customer-led customization are driving the appeal of prepaid cards. At the supplier side, low barriers to entry have intensified competition in the prepaid cards market leading to declines in fees and emergence of novel product/service features. On the flip side, lack of standardization of features, fees and services; lack of transparency, scrutiny, disparity; growing use of prepaid cards by fraudsters and criminals are key factors hindering growth in the market. New regulations and guidelines are however being set to impart standardization of features, provide security of funds on prepaid cards to prevent fraud, misuse and theft of funds.
As stated by the new market research report on Prepaid Cards, the United States represents the largest market worldwide with its dominance supported by the significant adoption of gift cards, reward cards, travel cards and general purpose reloadable cards in major sectors such as government, enterprise, healthcare, transportation and marketing; and growing number of businesses adopting prepaid cards for disbursing wages. Asia-Pacific ranks as the fastest growing market with a CAGR of 14.1% over the analysis period led by opportunities from emerging new applications such as meal cards, transit, GPR, payroll and government payments; huge unbanked population; growing use of Internet and rising demand for cash alternatives for payments.
Major players covered in the report include AccountNow, Inc., ACE Cash Express, Inc., American Express Company, The Bancorp Bank, Blackhawk Network, Inc., Caxton FX Limited, Edenred S.A., Green Dot Corporation, Kaiku Finance, LLC, MasterCard, Inc., MetaBank, Inc., Mint Technology Corporation, Travelex Group Limited, Visa, Inc., Wal-Mart Stores, Inc., The Western Union Company and WEX, Inc. among others.
The research report titled “Prepaid Cards: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies. The report provides market estimates and projections for Prepaid Cards in terms of US$ for all major geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe) Asia-Pacific (China, India and Rest of Asia-Pacific), Latin America (Brazil, Mexico and Rest of Latin America) and Rest of World. Further, the report analyses the global and regional markets for prepaid cards by the following segments - Closed Loop and Open Loop prepaid cards.
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