EEA Prepaid Card Market Outlook – 2027
The European Economic Area (EEA) prepaid card market size was valued at $182.6 billion in 2019 and is projected to reach $500.2 billion by 2027, growing at a CAGR of 14.7% from 2020 to 2027.
Prepaid card is a payment card having similar functions of credit cards. Prepaid transactions have transitioned from simple paper vouchers to multi-purpose prepaid cards. Moreover, demand for multipurpose prepaid cards is gaining traction among consumers having lower access to other forms of electronic payments. Furthermore, consumers & businesses avoiding linking of payments via banks are largely preferring prepaid cards as they do not require bank account details.
Increase in number of internet users, massive growth in adoption of prepaid cards due to adding funds through multiple avenues and rise in demand for cash alternatives are propelling the EEA prepaid card market growth. However, lack of standardization is becoming one of the major factors hampering the market growth. Conversely, surge in unbanked & under banked population, which are expected to adopt prepaid card in the upcoming years is becoming an opportunistic factor for the key players in the market.
By Functional Attribute
Open-loop Card is projected as one of the most lucrative segments.
Based on end user, the retail segment dominated the EEA prepaid card industry in 2019 and is projected to maintain its dominance during the forecast period. Growing large customer base shifting from traditional shopping to online shopping in various countries of Europe such as Italy, France and Germany, drive the growth of the retail segment in the region.
The report focuses on the growth prospects, restraints, and trends of the EEA prepaid card market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the EEA prepaid card market.
By Card Type
General purpose card accounted for the largest market share in 2019.
Segment Review
The EEA prepaid card market is segmented based on functional attribute, card type, end user, application, and country. In terms of functional attribute, it is bifurcated into open-loop card and closed-loop card. Based on card type, the market is classified into general purpose card, gift card, government benefit/disbursement card, payroll card, and others. On the basis of end user, it is segmented into retail, corporate, and government/public sector. Based on application, the market is segmented into food & groceries, pharmacy & drug stores, restaurants & bars, consumer electronics, media & entertainment, and others. Country wise, it is analyzed across Italy, Belgium, Denmark, Finland, France, Germany, Iceland, Ireland, Austria, Norway, Poland, Spain, the Netherlands, and Rest of EEA.
The report analyses the profiles of key players operating in the EEA prepaid card market include American Express Company, JPMorgan Chase & Co., Kaiku Finance, LLC., IDT Financial Services Limited, moneycorp, H&R Block, Inc., Mango Financial, Inc., Payoneer Inc., PayPal Holdings, Inc., and Netspend. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
By End User
Retail segment attained largest market share in 2019.
COVID-19 Impact Analysis
Key players operating in the market are having significant impact of the COVID-19 outbreak, which are witnessing increased growth rate in their revenue. The pandemic has enabled job losses, decline in country economy, and limited usage of funds in the region. Hence, the need to implement better product offerings by providing discounts for prepaid card users has increased considerably in the market. Therefore, with these increased demand for prepaid cards, which helps in limiting the expenses during the pandemic situation, the EEA prepaid card market is continuing to rise and is expected to maintain its dominance during the forecast period.
Top Impacting Factors
Increased adoption of prepaid cards due to adding of funds through multiple avenues
Direct deposits and bank transfers provide the facility to load cards over mobile check deposit. These features allow customers to deposit funds into their prepaid account by scanning a check through their mobile application only, followed by verification and then funds are added into the prepaid card after stipulated period of time. For instance, Bluebird is one such prepaid card provider, which offers their customers an option to deposit funds into prepaid card account either by cash or any others cards such as Moneypak and Western Union. Simultaneously, rapid changes in disposable income, consumer preference, wireless technologies, and others, have resulted into continuous improvements in adoption of prepaid cards. Moreover, funding from various private and government organizations to support prepaid card account drives the market growth.
By Application
Media & Entertainment would exhibit the highest CAGR of 17.9% during 2020-2027.
Surge in unbanked and under banked population
Lower-income households, younger households, less-educated households, among others are major categories comprising of high unbanked & under banked population. Generally, this population opts for prepaid cards as these cards are safe, inexpensive, and essential banking substitutes to cater to their financial transaction needs. For instance, in Belgium, around 167.286 number of unbanked population and this is expected to decline as consumers are switching towards online payment via prepaid cards, debit, and credit cards in the country. This spending pattern is one of the clear indicators that prepaid instruments have been become integrated into daily life among consumers & businesses and are open to explore options for prepaid cards. As a result, the increase in adoption of prepaid cards among the unbanked population is expected to create lucrative opportunities for the EEA prepaid card market in the upcoming years.
Key Benefits for Stakeholders
- The study provides an in-depth analysis of the EEA prepaid card market share along with the current & future trends to elucidate the imminent investment pockets.
- Information about key drivers, restrains, and opportunities and their impact analysis on the market size is provided in the report.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
- An extensive analysis of the key segments of the industry helps to understand the EEA prepaid card market trends.
- The quantitative analysis of the EEA prepaid card market from 2020 to 2027 is provided to determine the market potential.
EEA Prepaid Card Market Report Highlights
| Aspects | Details |
 By FUNCTIONAL ATTRIBUTE |
|
 By CARD TYPE |
|
 By END USER |
|
 By APPLICATION |
|
 By COUNTRY |
|
 Key Market Players | Netspend, JPMorgan Chase & Co., H&R Block, Inc., PayPal Holdings, Inc., .Payoneer Inc., AMERICAN EXPRESS COMPANY, moneycorp, Mango Financial, Inc., IDT Financial Services Limited, Kaiku Finance, LLC |
Analyst Review
The EEA prepaid card market is expected to grow at a promising rate during the forecast period. The advancement in payment channel; rise in need for secured & convenience financial transactions and increase in internet penetration among consumers & businesses are driving the market growth in the region. Moreover, due to rise in use of mobile devices, massive internet access which is supported by a number of advance technologies are providing a platform for prepaid card providers to expand their services offerings in the region.
Moreover, during the unprecedented COVID-19 health crisis, demand for the prepaid card services has largely expanded and companies in the region are widely adopting & implementing several offers & substitute solutions in the market. Furthermore, financial services industry is highly competitive even in times of the economic slowdown, and therefore, the prepaid card providers have major opportunities to introduce numerous benefits & offers in the EEA region.
The EEA prepaid card market is fragmented with the presence of key vendors such as American Express Company, JPMorgan Chase & Co., Kaiku Finance, LLC., IDT Financial Services Limited, moneycorp, H&R Block, Inc., Mango Financial, Inc., Payoneer Inc., PayPal Holdings, Inc., and Netspend. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
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