According to a recent report published by Allied Market Research, titled, “EEA Prepaid Card Market By Functional Attribute, Card Type, End User, and Application: Opportunity Analysis and Industry Forecast, 2020-2027”, the EEA prepaid card market was valued at $182.6 billion in 2019, and is projected to reach $500.2 billion by 2027, registering a CAGR of 14.7% from 2020 to 2027.
Prepaid card or a prepaid debit card is a form of secured card with funds loaded before it is used by the customers. It generally functions as credit & debit cards, while shopping online, paying bills, and others. Moreover, the demand for prepaid cards is continuing to rise as it is safer & more convenient than using cash. In addition, prepaid card is also known as a pay-as-you-go card or a general-purpose reloadable prepaid card. With having certain limits over spending through prepaid card, it helps consumers in fixing expenses, managing finances, and others.
Adoption of prepaid cards is witnessing fastest growth rate as funds in these cards can be added through multiple avenues which help customers to make easier payments in the market. Moreover, rapid expansion of internet penetration & rise in demand for cash alternatives are becoming some of the major growth factors driving the EEA prepaid card market. However, lack of standardization in terms of fees & product categories under prepaid cards is hampering the market growth in the region.
On the basis of functional attribute, the closed-loop card segment is expected to grow at a fastest CAGR and is projected to maintain its dominance during the forecast period. With becoming single-purpose prepaid card, the demand for closed loop prepaid card is higher in the market. Factors such as easy accessibility, low risk of frauds, and low interest charges are propelling the growth of this segment during the forecast period.
Based on card type, general purpose cards segment attributed major share of the EEA prepaid card market during the forecast period. As it provides the same convenience and facility to consumers affiliated with credit and debits cards along with protection to prevent frauds and errors by using personal identification number (PIN).
In the wake of COVID-19 pandemic situation, the EEA prepaid card market has attained a significant growth rate and is expected to maintain its dominance during the forecast period. Due to multiple countries in the region have implemented lockdowns & shutdowns of retail stores, and other physical locations providing utility services. This, as a result is expected to increase the volume of prepaid card usage, as consumers preference has changed in terms of executing payments. Hence, key players in the market are expecting higher demand for prepaid cards with ease-of-use & efficiency services in the upcoming years.
Key Findings of the Study
- By functional attribute, the open-loop card segment led the EEA prepaid card market size in terms of revenue in 2019.
- By country, Italy generated the highest revenue in 2019.
- By end user, the retail segment is expected to attain significant growth during the forecast period.
The key players profiled in the EEA prepaid card market analysis are 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.