Prepaid card Market by Type (Open loop and closed loop); byIndustry Vertical (Financial Institutions, Corporate Institutions, Retail and Government ); and Region -Analysis of Market Size, Share & Trends for 2016 - 2019 and Forecasts to 2029
Prepaid card market to surpass USD 8486.6 billion by 2030, which is valued at 2437.3 billion in 2021 at a compound annual growth rate of 14.9%.
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 cards issued to those who are not eligible for a bank account or unable to incur the fees associated with keeping a 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 more reliable because it's secured by a PIN code.
Prepaid card market is expected to project a CAGR of 14.9% during the forecast period, 2021-2030
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.
The closed-loop segment is anticipated to register XX% of the volume share.
The global prepaid card market is segmented by type into Closed-loop and open-loop. The growth of the 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 the 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 the highest CAGR.
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
The 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 transactions via credit, debit, and prepaid cards globally
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.
North America held the largest market accounting for XX% of the 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 the 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.
American Express Company
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