Prepaid Card Market Dynamics 2021-2031
The prepaid card market is anticipated to expand at a CAGR of 23.5% from 2023 to 2031.
Prepaid cards have replaced cash, checks, and other payment cards in situations where consumers or businesses want to use an electronic method of payment.
Prepaid Card Market Analysis
The prepaid card market is predicted to grow rapidly during the forecast period, owing to the convenience offered, which is similar to that of a credit or debit card, as well as the option for the end user to determine the spending limit based on their budget. Prepaid cards have replaced cash, checks, and other payment cards in situations where consumers or businesses want to use an electronic method of payment without tying it to a credit or debit account. Furthermore, prepaid cards are a valuable alternative to traditional banking products for persons who do not have bank accounts or desire more control over their spending because they are used to budgeting, travel, and others. The prepaid card market is influenced by factors such as the rise in demand for prepaid cards in remittances and the diversification of financial institutions are among the factors contributing to the growing prepaid cards market size.
Prepaid Card Industry Overview
- Prepaid cards are sometimes known as prepaid debit cards or stored value cards. These prepaid cards can be loaded easily using several platforms, including bank account transfers, direct deposit, and cash, both online and in-person.
- Furthermore, the market is expected to see significant expansion due to the Growth of the E-commerce Industry and diversification of financial institutions. The prepaid cards market size is likely to surge by 2031 owing to the demand for prepaid cards in remittances.
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Prepaid Card Market: Strategic Insights
Market Size Value in US$ 2,983.50 billion in 2023 Market Size Value by US$ 12,274.79 billion by 2031 Growth rate CAGR of 19.3% from 2023 to 2031 Forecast Period 2023-2031 Base Year 2023
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Prepaid Card Market: Strategic Insights
| Market Size Value in | US$ 2,983.50 billion in 2023 |
| Market Size Value by | US$ 12,274.79 billion by 2031 |
| Growth rate | CAGR of 19.3% from 2023 to 2031 |
| Forecast Period | 2023-2031 |
| Base Year | 2023 |
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Prepaid Card Market Drivers and Opportunities
Growing Demand for Prepaid Cards in Remittances to Drive the Prepaid Card Market
- Prepaid payment cards have grown in popularity in both emerging and developed nations as a means of promoting financial inclusion and supplementing remittances. The prepaid card market includes a wide range of card kinds that enable cardholders to transfer payments to authorized family members in other countries.
- Furthermore, to use this feature, the customer can choose between two structures: dual card or subaccount holding. In the dual card system, the account holder is given two cards, one of which can be sent to a family member abroad to access funds from the sender's account.
- Factors such as the rise in demand for prepaid cards in remittances and diversification of financial institutions augment the prepaid cards market growth. However, security issues and privacy concerns impede the prepaid card market growth.
Prepaid Card Market Report Segmentation Analysis
- The “prepaid card market analysis” has been performed by considering the following segments: card type, usage, and end-use. Based on card type, the prepaid card market is segmented into open-loop prepaid cards and closed-loop prepaid cards.
- The closed-loop prepaid card segment is expected to hold a substantial prepaid card market share in 2023. This was ascribed to the fact that they are affiliated with certain stores or businesses, offering particular incentives, discounts, and brand loyalty benefits that entice customers seeking tailored and valuable experiences.
- On the other hand, open-loop prepaid cards are expected to be the fastest-growing segment. This is owing to their broader usage, as they function similarly to traditional debit or credit cards and allow for a variety of purchases online transactions.
- Based on end-users, the prepaid card market is segmented into retail establishments, corporate, and government. The retail establishment's plan is estimated to hold a significant prepaid card market share by 2031.
Prepaid Card Market Share Analysis By Geography
The scope of the prepaid card market report is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is experiencing rapid growth and is anticipated to hold a significant prepaid card market share. The region's well-established digital payment usage, financial infrastructure, and technological advancements all contribute to the growing growth of prepaid cards. Furthermore, e-commerce, the popularity of online shopping, and mobile payment methods are consistent with the convenience and security that prepaid cards offer.
Prepaid Card Market Report Scope
The "Prepaid Card Market Analysis" was carried out based on provider, end-user, and geography. In terms of providers, the market is segmented into card types; the prepaid card market is segmented into open-loop prepaid cards and closed-loop prepaid cards. Based on usage, the prepaid card market is segmented into general-purpose reloadable cards, gift cards, government benefit/disbursement cards, payroll cards, and others. Based on end-users, the prepaid card market is segmented into retail establishments, corporate, and government. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
Prepaid Card Market News and Recent Developments
Companies adopt inorganic and organic strategies such as mergers and acquisitions in the prepaid cards market. A few recent key market developments are listed below:
- In November 2022, Visa increased its prepaid card services with trial payment innovations, such as instant-issue prepaid cards with animated card art and facial biometric payments. As consumers get more accustomed to obtaining items promptly, Visa is piloting a digital card issuance option for a small number of cardholders in Doha.
[Source: Visa Inc, Company Website]
- In July 2023, Giverly, a social impact fintech firm, has teamed with Transcorp International and Visa to create prepaid cards that combine shopping with charitable giving. These cards provide discounts and transform routine purchases into significant donations to important social causes. Giverly also offers an employee benefits solution, allowing businesses to distribute incentives and bonuses directly to employees' Giverly cards, fostering a culture of giving within firms.
[Source: Giverly, Company Website]
Prepaid Card Market Report Coverage & Deliverables
The market report on “Prepaid Card Market Size and Forecast (2021–2031)”, provides a detailed analysis of the market covering below areas-
- Market size & forecast at global, regional, and country- level for all the key market segments covered under the scope.
- Market dynamics such as drivers, restraints, and key opportunities.
- Key future trends.
- Detailed PEST & SWOT analysis
- Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
- Industry landscape and competition analysis covering market concentration, heat map analysis, key players, recent developments.
- Detailed company profiles.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Offerings, Card Type, End-User, and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
The global prepaid card market is expected to grow at a CAGR of 23.5% during the forecast period 2023 - 2031.
The rise in demand for prepaid cards in remittances and the diversification of financial Institutions are the major factors that propel the global prepaid card market.
The key players holding majority shares in the global prepaid card market are Green Dot Corporation, American Express Company, JPMorgan Chase And Co., PayPal Holdings, Inc., and Mastercard.
Growing fintech companies and digital transformation, which is anticipated to play a significant role in the global prepaid card market in the coming years.
- American Express Company
- PayPal Holdings, Inc.
- Travelex Foreign Coin Services Limited’
- Mastercard
- Kaiku Finance LLC
- Mango Financial, Inc.
- Green Dot Corporation
- Visa Inc.
- NetSpend Corporation
- JPMorgan Chase And Co.
- Green Dot Corporation
- American Express Company
- JPMorgan Chase And Co.
- PayPal Holdings, Inc.
- Mastercard;
- Visa Inc.
- NetSpend Corporation
- Mango Financial, Inc.
- Kaiku Finance LLC
- Travelex Foreign Coin Services Limited
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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