Global Prepaid Card Market Report and Forecast 2024-2032

Global Prepaid Card Market Outlook

The global prepaid card market stood at a value of around USD 3,183.20 billion in 2023. The market is further expected to grow at a CAGR of 14.6% in the forecast period of 2024-2032 to attain a value of USD 10,852.61 billion by 2032.

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Rising Demand for Open Loop Cards Owing to their Benefits to Bolster the Growth of the Prepaid Card Industry

Based on type, open loop prepaid cards are anticipated to witness a significant growth over the forecast period owing to their various advantages. These advantages include the immediate availability and universal acceptability of the funds. These cards are an excellent tool to manage budget and transactions because a set amount is loaded in such cards in advance. At the time of the struggling economy, owing to the COVID-19 outbreak, prepaid cards remained free from costly overdraft fees and interest charges, which resulted in their increased utilisation among consumers. Furthermore, many governments have commissioned prepaid cards to support their citizens and respond to the global pandemic by distributing several aid packages quickly and securely, with no exclusion for the unbanked.  Open loop card proves to be profitable in such cases as it offers competitive card acceptance fees and next-day settlement. Owing to these factors, open loop cards are likely to witness a significant demand in the forecast period.

Growing Adoption of General-Purpose Reloadable Cards for Bill Payments to Augment the Market Growth

On the basis of usage, general-purpose reloadable cards are likely to account for a significant share in the market, owing to the rising adoption of this type of card for utility bill payments, online shopping, ticket bookings, and cash withdrawal, among others. The considerable growth of the retail sector in emerging economies of the world owing to the development of retail stores is expected to provide a further impetus to the market growth in the forecast period.

North America Accounts for a Significant Share in the Market

Region-wise, North America holds a significant share in the industry. The increased awareness regarding the benefits of prepaid cards and the favourable government regulations, especially in countries like the United States and Canada, have been propelling the demand for prepaid cards in the region. Over the forecast period, the rapid technological developments and ease in payment methods are anticipated to aid the market growth.

Prepaid Card: Market Segmentation

Prepaid card is defined as a stored-value card that is used to make purchases and pay bills, just like debit or credit cards. Backed by major card networks, prepaid cards are excepted everywhere. An individual can buy such cards with money loaded in it, along with the convenience to recharge or put more money in the card.

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Based on card type, the market is divided into:

• Closed Loop
• Open Loop

On the basis of usage, the industry is segmented into:

• General-Purpose Reloadable Card
• Gift-Card
• Government Benefit/Disbursement Card
• Incentive/Payroll Card
• Others

By industry, the market is divided into:

• Retail Establishments
• Corporate Institutions
• Government
• Financial Institutions and Others

The regional markets for the product include North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

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Growing Acceptance of Prepaid Card in Various Industries, such as Retail and Financial Institutions, to Boost the Growth of the Prepaid Card Industry

The global prepaid card industry is driven by the rising acceptance and usage of the product in retail and financial institutions, among others. The rising consumer preference for cashless payments in retail establishments, owing to the convenience factor, is aiding the market growth. The use of prepaid cards provides convenience, which is resulting in their increased adoption. Furthermore, the market is expected to be aided by the constant lookout of leading players to develop improved solutions for cashless payments. In addition, the market is anticipated to be aided by the growing number of internet users and the steady growth of the e-commerce industry.

Key Industry Players in the Global Prepaid Card Market

The report gives a detailed analysis of the following key players in the global prepaid card market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:

• American Express Company
• Banco Bilbao Vizcaya Argentaria, S.A.
• Green Dot Bank
• Kaiku Finance, LLC
• Mango Financial, Inc.
• JPMorgan Chase & Co.
• Others

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis.

Key Highlights of the Report