Prepaid Cards Are Taking Their Place in the Financial Services Landscape

 

New report from Mercator Advisory Group discusses what prepaid program managers need to do now that the consumer market has matured and the competitive landscape is changing.

Boston, MA – June 05, 2017 - The ForeSight report titled Open-Loop Prepaid Card Management: Strategies to Take Advantage of the Industry’s Inflection Point provides a first look at new prepaid landscape. The prepaid market has matured and changed, but opportunities still exist.

Mercator Advisory Group’s report focuses on the near-term, medium-term, and long-term opportunities for prepaid providers. Near-term opportunities still exist in the traditional account replacement market, medium-term opportunities exist in the commercial market, and long-term opportunities exist in providing prepaid payment options in new technological contexts.
  
This report encourages providers to think about prepaid cards in new contexts and to figure out how they can enhance their programs to make prepaid part of a broad suite of financial services products. Execution will be key, since the market has become more competitive, and the opportunities are no longer purely transactional ones.

Download this complimentary ForeSight report, Open-Loop Prepaid Card Management: Strategies to Take Advantage of the Industry’s Inflection Point, for free.

"Prepaid card providers need to learn how to operate in a new environment, but opportunities exist both in traditional and new markets," Ben Jackson, Director of Mercator Advisory Group's Prepaid Advisory Service, and author of the report, commented.

Highlights of the report include:

  • Green Dot Corporation's acquisition of UniRush LLC absorbed the last independent prepaid program manager of significant size into a larger financial services organization. This was the culmination of a larger trend of prepaid being placed within the context of suites of financial services. 

  • Closed-loop prepaid cards are not immune from this trend. Gift cards have evolved from being the plastic replacement of paper gift certificates into branded currencies that play a role in marketing and loyalty programs, mobile payments, and cost management programs.

  • Financial services providers are looking to prepaid as a way to add instant payments capabilities with good funds to other financial products such as expense management tools. New opportunities will be developing in companion cards, commercial cards, and the internet of things. 

  • Technology will continue to be an important driver of success in prepaid programs in terms of both customer-facing technology and back-office tools that allow providers to gain insights and protect customer information.

One of the 4 exhibits from the 10-page report:

Open-Loop Prepaid Card Management: Strategies to Take Advantage of the Industry’s Inflection Point

The document is 10 pages long and contains 4 exhibits.

Members of Mercator Advisory Group's Prepaid Advisory Service have access to this report as well as the upcoming research for the year ahead, presentations, analyst access, and other membership benefits.

Download this complimentary ForeSight report, Open-Loop Prepaid Card Management: Strategies to Take Advantage of the Industry’s Inflection Point, for free.

Please visit us online at www.mercatoradvisorygroup.com.

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About Mercator Advisory Group
Mercator Advisory Group is the leading independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world's largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors. Mercator Advisory Group is also the publisher of the online payments and banking news and information portal PaymentsJournal.com.