SAN FRANCISCO, Nov. 3, 2021 /PRNewswire/ -- A new market study published by Global Industry Analysts Inc., (GIA) the premier market research company, today released its report titled "Prepaid Cards - Global Market Trajectory & Analytics". The report presents fresh perspectives on opportunities and challenges in a significantly transformed post COVID-19 marketplace.
FACTS AT A GLANCE
Edition: 16; Released: October 2021
Executive Pool: 28668
Companies: 259 - Players covered include AccountNow, Inc.; ACE Cash Express, Inc.; American Express Company; Blackhawk Network, Inc.; Caxton FX Limited; Edenred S.A.; Green Dot Corporation; Kaiku Finance, LLC; MetaBank, Inc.; The Bancorp Bank; The Western Union Company; Visa, Inc.; Wal-Mart Stores, Inc. ; WEX, Inc. and Others.
Coverage: All major geographies and key segments
Segments: Type (Closed Loop, Open Loop)
Geographies: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
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Global Prepaid Cards Market to Reach US$2.7 Trillion by the Year 2026
Prepaid cards are a form of payment cards with stored value but with no link to an external account at a bank. These cards were initially launched as more effective replacements for food coupons and paper-based gift certificates. While still a young industry, prepaid cards are gradually evolving into mainstream market driven by wider acceptance and favorable attributes. Prepaid gift cards are increasingly becoming a part of core employee engagement and reward strategies in various business entities. Governments, particularly in the US, are focusing on disbursing wages, distributing benefits and making other payments through prepaid cards, which not only depict their versatility but also potential growth the market has in offing. Retailers are increasingly selling these cards to improve customer loyalty, brand awareness and increase footfalls, driving sales of prepaid cards. Prepaid travel cards are witnessing increasing popularity as safe and convenient alternative to traveler checks, further contributing to growth in the market. Another growth driver is e-commerce sales as consumers can use prepaid cards instead of credit or debit cards for making purchases online.
Amid the COVID-19 crisis, the global market for Prepaid Cards estimated at US$1.6 Trillion in the year 2020, is projected to reach a revised size of US$2.7 Trillion by 2026, growing at a CAGR of 9.6% over the analysis period. Closed Loop, one of the segments analyzed in the report, is projected to grow at a 9.3% CAGR to reach US$1.7 Trillion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Open Loop segment is readjusted to a revised 10% CAGR for the next 7-year period. This segment currently accounts for a 42% share of the global Prepaid Cards market. Closed Loop prepaid cards are the most basic types of prepaid cards that emerged as a replacement for conventional gift certificates and hence are generally referred to as merchant gift cards. Closed Loop prepaid cards are mainly merchant specific and can be accepted for transactions exclusively at a predetermined merchant's location. Open Loop prepaid cards, also known as network-branded prepaid cards, differ from Closed Loop prepaid cards in terms of their endorsement by major retail electronic payment networks and their wider acceptability at all locations where these networks are accepted. These cards are generally reloadable, which allow cardholders to deposit additional funds to the card in case the previously loaded amount is spent.
The U.S. Market is Estimated at $612.7 Billion in 2021, While China is Forecast to Reach $382.8 Billion by 2026
The Prepaid Cards market in the U.S. is estimated at US$612.7 Billion in the year 2021. The country currently accounts for a 36.09% share in the global market. China, the world's second largest economy, is forecast to reach an estimated market size of US$382.8 Billion in the year 2026 trailing a CAGR of 13.2% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 7.6% and 9.3% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 8.8% CAGR while Rest of European market (as defined in the study) will reach US$433.4 Billion by the end of the analysis period. The US has been at the forefront of prepaid card adoption. Growth in the market is supported by factors such as rise in demand for prepaid products, increase in online shopping and anticipated improvement in economic outlook against the backdrop of growth in key macroeconomic indicators post COVID pandemic. Increasingly, governments, retailers, corporate enterprises and others outside the US are realizing the benefits of these cards in enhancing revenues and providing better customer service, driving its adoption. More
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Global Industry Analysts, Inc., (www.strategyr.com) is a renowned market research publisher the world`s only influencer driven market research company. Proudly serving more than 42,000 clients from 36 countries, GIA is recognized for accurate forecasting of markets and industries for over 33 years.
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