Prepaid Card Market Overview:
Prepaid Card Market is projected to grow at a CAGR of 22.7% from 2016 to 2022. The market accounted for $896 billion, and is expected to reach $3,653 billion by 2022. The base year considered for the study is 2015, and the forecast period is 2016-2022.
Prepaid card is a payment card where funds are connected directly to a card without being linked to a bank account. Prepaid cards are available to everyone, regardless of credit rating, income, or whether someone holds a bank account. These cards are a substitute to a traditional bank accounts, and are a new way of managing money. These cards are widely used in retailer stores, e-commerce, and others. These were primarily introduced to cater to the unbanked population and individuals with limited access to bank services.
The global prepaid cards market is driven by factors such as increase in awareness and ease-of-access, large number of Internet users, boom in E-commerce industry, and growth in demand for cash alternatives. These factors have increased their adoption in in corporate institutions, government, financial Institutions, & others. Therefore, the global prepaid card market is expected to witness moderate growth in the near future, owing to easy accessibility and flexibility. However, lack of security hampers the market growth. Furthermore, emergence of new applications and growth of unbanked and underbanked population are expected to provide lucrative opportunities to the market.
The global prepaid card market is segmented on the basis of card type, usage, industry vertical, and geography. Based on the card type, the market is classified into single-purpose prepaid card and multi-purpose prepaid card. In 2015, the single-purpose prepaid card segment dominated the global market in terms of revenue, and is expected to maintain this trend throughout the forecast period, owing to its easy accessibility and flexibility.
Based on usage, the general purpose reloadable card segment dominated the global market in terms of revenue, and is expected to maintain this trend throughout the forecast period. However, the gift card segment is expected to witness significant growth in the years to come owing to increase in demand for electronic payment.
Based on industry vertical, the retail establishment segment offers lucrative scope to industry players, and are expected to exhibit significant growth as compared to the other segments. The market is analyzed based on four regions, namely North America, Europe, Asia-Pacific, and LAMEA. Europe accounted for the largest revenue share in the global market, owing to the increase in demand for cash alternatives and rise in the number of unbanked and underbanked population.
Global Prepaid Card Market Segmentation
Comprehensive competitive analyses and profiles of major market players, including Green Dot Corporation, NetSpend Holdings, Inc., H&R Block Inc., American Express Company, JPMorgan Chase & Co., PayPal Holdings, Inc., BBVA Compass Bancshares, Inc., Mango Financial, Inc., UniRush, LLC, and Kaiku Finance LLC. are provided in this report. Presently, the players in the global prepaid card market have adopted product launch and acquisition to expand their customer base and increase their market shares.
Global Prepaid Card Market Top Impacting Factors
Increase in Awareness and Ease of Access
The global prepaid card market is expected to grow in the future due to increase in awareness and convenience of their usage as these cards are not linked to the bank accounts of the individuals; hence, there are no overdraft charges to the banks. Moreover, while using prepaid cards, consumers cannot borrow the money and they are limited to use only the amount that is loaded into their cards.
Growth of Unbanked and Underbanked Population
Prepaid cards offer a safe, inexpensive, and essential banking substitute to low-income unbanked and underbanked households. According to a recent study, over 40% of prepaid card holders do not possess a checking account. Unable to access online banking, ATMs, and online shopping, these people thus use prepaid cards for strong involvement in the market. The population of these unbanked and underbanked people is increasing rapidly, thus providing a customer base for prepaid card market in the future.
- The study provides an in-depth analysis of the global prepaid card market to elucidate the prominent investment pockets.
- Current trends and future estimations have been outlined to determine the overall attractiveness, and single out profitable trends to gain a stronger foothold in the market.
- The report provides information regarding key drivers, restraints, and opportunities along with their impact analyses.
- The market is analyzed based on various regions, namely North America, Europe, Asia-Pacific, and LAMEA.
Prepaid Card Market Key Segmentation:
By Card Type
- Single-purpose Prepaid Card
- Multi-purpose Prepaid Card
- General-Purpose Reloadable Card
- Gift Card
- Government Benefits/Disbursement Card
- Incentive/Payroll Card
By Industry Vertical
- Retail Establishments
- Corporate Institutions
- Financial Institutions & Others
- North America
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- Latin America
- Middle East