Market overview

An alternate credit card is a prepaid card allowing customers to spend up to the amount they have loaded on the card. It is identical to a debit card and is ideal for banking, payment of online bills, gas bills, and shopping. Such prepaid cards are forms of GPR card issued to those who are not eligible for a bank account or unable to incur the fees associated with keeping the Bank account. These prepaid cards are general-purpose cards and are reloadable. All closed and open networks operate on these tokens. There are different kinds of prepayment cards such as buying cards, indemnification cards, travel cards, healthcare cards, etc. Instead of carrying cash, the prepaid card is safer and reliable because it's secured by PIN code.

Market Highlights

Fatpos Global anticipates the Prepaid card market to surpass USD XX Billion by 2030, which is valued at XX billion in 2019 at a compound annual growth rate of XX%. The growth of the market is driven by increased demand for cash alternatives and access to reliable and energy-efficient prepaid cards. Moreover, innovations in the electronic commerce industry and the rise in the acceptance of prepayment cards by additional funds in many ways stimulate the growth of the prepayment card market.

Source: Fatpos Global

Recent Highlights in the Prepaid card market

Prepaid card Market: Segments

Global market has been segmented on the basis of type, and by industry vertical. It has been further segmented on the basis of region into North America, Europe, Asia-Pacific, Mid East and Africa.

By type (in %), global Prepaid card Market, 2019

The closed loop segment is anticipated to register XX% of the volume share.

Global prepaid card Market is segmented by type into: Closed loop and open loop

The growth of prepaid cards market in this segment is driven by increased usage of closed loop prepayment by passengers, retailers and students.

The open loop segment is anticipated to grow at a highest CAGR

Due to several features including low fraud risk, easy access and low interest rates, the open loop segment is anticipated to grow at a highest CAGR.

By Industry Vertical (in %), global Prepaid card Market, 2019

Government sector accounted for XX% of the global volume in 2019 and is anticipated to grow at a highest CAGR.

Global Prepaid card market is segmented by industry vertical: Financial Institutions, Corporate Institutions, Retail and Government

The growth of the market is driven by growing demand for cash alternatives and the availability of inexpensive and energy-saving prepaid cards. Also, e-commerce advances and increased prepaid card adoption due to funds addition on different avenues accelerate the growth of the demand for prepaid cards.

Source: Fatpos Global

Global Prepaid card Market: Drivers and Restraints

Drivers

• Substitute for cash

There has been a surge in the market for cashless consumer transactions that want low-risk investments, producing more profits than conventional cash-based accounts. The risk of over-consumption of credit cards, when a restriction is put on spending, is minimized. Such pre payment cards can be easily loaded in different ways through multiple platforms including bank transfers, online or in-person direct deposit or cash.

• Increased internet penetration and growth of E-commerce

Rapid growth of the e-commerce industry has prompted consumers to use plastic money instead of holding hard cash in their wallets. As reported by several banks, the new-age segment has been one of the key factors driving sale transaction via credit, debit, and prepaid cards globally

Restraints

• Increasing risk due to technological advancement

Previously there was a substantially low risk of fraud because Prepaid cards were seen as safe because of an online PIN to authenticate transactions. As innovation in the fintech industry is increasing, fraudsters have come up with frauds that hinder market growth, such as magnetic strips, etc

Global Prepaid card Market: Regions

North America held the largest market accounting for XX% of total market volume share in 2019

Increased adoption of prepaid cards by different employees and favorable government regulations for prepayment cards are the most significant driving forces in market growth in this area. Asia-Pacific, however, will have the highest growth rate during the forecast period due to an increase in retail applications, governments and corporate institutions as well as increasing public assistance in the developing Asia-Pacific countries.

Asia Pacific: China, Japan, India, and Rest of Asia Pacific
Europe: Germany, the UK, France, and Rest of Europe
North America: The US, Mexico, and Canada
Latin America: Brazil and Rest of Latin America
Middle East & Africa: GCC Countries and Rest of Middle East & Africa

Source: Fatpos Global

The global Prepaid card market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y

            Growth, CAGR – United States and Canada

• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y

            Growth, CAGR – Mexico, Argentina, Brazil and Rest of Latin America

• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth,

            CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium,

 Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia,

            Turkey and Rest of Europe

• APAC Market Size, Share, Trends, Opportunities, Y-o-Y Growth,

            CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New

            Zealand, Australia and Rest of APAC

• MENA Market Size, Share, Trends, Opportunities, Y-o-Y Growth,

            CAGR – North Africa, Israel, GCC, South Africa

Global Prepaid card Market: Key Players

• American Express Company
  • Company Overview
  • Business Strategy
  • Key Product Offerings
  • Financial Performance
  • Key Performance Indicators
  • Risk Analysis
  • Recent Development
  • Regional Presence
  • SWOT Analysis
• Green Dot Corporation
• JPMorgan Chase & Co.
• Mango Financial, Inc.
•  PayPal Holdings, Inc.
• BBVA Compass Bancshares, Inc.
• H&R Block Inc.
•  Kaiku Finance LLC.
• NetSpend Holdings, Inc
• UniRush, LLC
• Other prominent players

The global Prepaid card market report also contains analysis on:

• Prepaid card  Market Segments:
  • By type:
    • Open Loop
    • Closed loop
  • By Industry Vertical:            
    • Retail & E-commerce
    • Government
    • Financial Institutions
    • Corporate Institutions
    • Others
• Prepaid card  Market Dynamics
• Prepaid card  Market Size
• Supply & Demand
• Current Trends/Issues/Challenges
• Competition & Companies Involved in the Market
• Value Chain of the Market
• Market Drivers and Restraints

FAQs on Global Prepaid card Market

• Which segment is anticipated to hold the largest market share?
• At what CAGR is the market anticipated to grow between 2020 and
• Who are the key players in the global Prepaid card market?
• What could be the challenging factors for the growth of the Prepaid card market?
• What are the growth drivers for the Prepaid card market?