Prepaid Card Market

Global Prepaid Cards Market Size (2024 to 2029) 

The size of the global prepaid cards market is expected to be worth USD 2,919.72 billion in 2024 and grow at a CAGR of 17.30% from 2024 to 2029 to achieve USD 6,483.82 billion by 2029. 

Prepaid cards are mostly used by people who don’t have bank accounts. These are also applicable to an online shop. Cards are loaded with money at pay points by the user and will not allow access more than the amount loaded on the card. These are simply carrying money in a plastic card. Prepaid cards are highly beneficial for teenagers as these cards will not run up debuts on them. 

In the current scenario, an increasing number of transactions are taking place by cards instead of cash due to the availability of revolutionizing payment methods. Such payment methods have become a substitute for the use of traditional bank accounts and provide a new way to manage money. A prepaid card is a payment card where funds are connected directly to a card without any link through the bank account. These cards can be easily accessed by swiping them without any picture ID and PIN number, and they function in a manner similar to credit and debit cards; thus, the user can also use them abroad. These cards are available to everyone, regardless of credit rating, income, or whether or not someone holds a bank account. The use of prepaid cards has witnessed rapid growth for payment purposes in the BFSI sector. 

Prepaid cards were initially designed to capture the unbanked and under-banked population; however, these have gained the attention of the banked population too. Prepaid card usage has resulted in a transformative effect on retail establishments, corporate institutions, and others, where the customer can easily shop subject to their card’s accessibility terms, although the amount spent is subject to the pre-deposited amount. The rising population and growing awareness of the utilization of cards are setting up growth opportunities for the market. The increasing prevalence of the e-commerce industry is prompting the demand for the prepaid card market. Furthermore, increasing support from private organizations towards cashless transactions is boosting the growth of the market. 

Global Prepaid Cards Market Drivers: 

The emerging prepaid card-related applications, growth in awareness of prepaid cards for various transactions, and the increase in popularity of these cards during traveling abroad are expected to boost the market growth in the future. Increasing demand for the Internet of Things across the world is a major factor accelerating the demand of the market. The rise in the norms of banks and financial institutes regarding common people is also leveraging the demand for this market. The increasing economy in both developed and developing countries is surging the growth of the market. 

Global Prepaid Cards Market Challenges: 

However, increasing fraud activities are quietly declining the demand of the market. Lack of standardization is also a limiting factor for the prepaid card market to grow. 

REPORT COVERAGE: 

This research report on the global Prepaid Card Market has been segmented and sub-segmented based on type, category, channel, end user, and region. 

Global Prepaid Card Market - By Type: 

• Closed Loop 
• Open Loop 

Based on type, the closed-loop segment is leading with the highest shares of the market. Growing beneficial activities with prepaid cards are majorly fuelling the growth rate of the market. The rise in the number of people without bank accounts due to stringent rules and regulations is escalating the growth of the market. The growing prevalence of the use of prepaid cards in many areas and also acceptance of these cards in various fields is straight expanding the demand in the prepaid card market.  

Global Prepaid Card Market - By Category: 

• General Purpose Reloadable (GPR) Cards 
• Government Benefit Cards 
• Payroll Cards 
• Prepaid Debit Cards 
• Gift Cards 
• Fuel Cards 
• Prepaid Incentive Cards 
• Other Prepaid Cards 

The General-Purpose Reloadable cards segment generated the highest revenue in 2018 and is expected to remain dominant throughout the forecast period. This can be attributed to the rise in the use of the card because of its pure convenience and benefits over traditional banking cards. Another major reason for such huge demand is because of teenagers, Parents nowadays giving these cards to kids as this will help to keep the kid’s pocket money in check and the flexibility to use these cards in many places also helped to the huge market share.  

Global Prepaid Card Market - By Channel: 

• Online Retail Stores 
• Bricks and Mortar Stores 
• Fintech Companies 
• Others 

 The emergence of e-commerce in every field is contributing the highest shares for the online retail store's segment in the prepaid card market. Following online retail stores, the bricks and mortar stores segment is leading with the highest shares of the market. Parents prefer these cards for their kids and teenagers who have specific benefits are also likely to bolster the demand of the market.  

Global Prepaid Card Market - By End User: 

• Business (Large Enterprise and Small & Medium Enterprise) 
• Government 
• Individual/Personal 

The business (large enterprises and small & medium enterprises) sector holds dominant shares of the market. An increasing number of large, small & medium enterprises are lavishing the growth rate of the prepaid cards market. These cards are very helpful when traveling abroad, which is also a cause for the market to grow.  

Global Prepaid Card Market - By Region: 

• North America 
• Europe 
• The Asia Pacific 
• Latin America 
• The Middle East and Africa 

Regionally,  Europe is leading the highest shares of the prepaid card market owing to the adoption of the latest technology in every sector by accepting cashless transactions. In addition to this, the market is also led by an increasing number of financial institutions, which provides flexibility in the usage of this card. 

The Asia Pacific region has been witnessing the highest growth rate, and it is also expected that the market will grow at the highest CAGR in the coming years. Growing support from the government in making these cards available without any rules and regulations is a primary factor in gearing up the demand of the market.  

The Middle East and Africa are anticipated to have huge growth opportunities with the rising awareness of the utilization of prepaid cards in a simple way. The increasing number of online stores across the region is also broadening the demand for the prepaid card market . 

KEY MARKET PLAYERS: 

Some of the leading companies dealing in the Global Prepaid Card Market include JP Morgan Chase & Co. (U.S.), NetSpend Holdings, Inc. (U.S.), H&R Block (U.S.), American Express Company (U.S), PayPal Holdings, Inc. (U.S.), BBVA Compass Bancshares, Inc. (U.S.), Mango Financial, Inc. (U.S.), and Kaiku Financial LLC. (U.S.)., GreenDot Corporation (U.S) 

RECENT HAPPENINGS IN THE MARKET: 

• It is said that JPMorgan Chase & Co. is planning to merge Quorum, its marquee blockchain unit, with ConsenSys, a Brooklyn-based startup. Also, it is unclear whether the people who are currently working the Quorum will join ConsenSys after the merge.  
• nFinanSe Inc., an innovative financial services company and provider of stored value and pre-paid card solutions headquartered in Tampa, Florida, has announced that they are entering into a letter of intent to be acquired by AccountNow, Inc., a franchise of Green Dot Corporation. 
• Gregory Laurent, Regional Vice President and Head of Network - Oceania, Western Union, said that Western Union is going to extend its long-term and successful relationship with Australia Post to provide ongoing support for people in Australia and help them to get connected with their loved ones across the world. He also mentioned that they are committed to enhancing their service to customers with more innovations.