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COVID-19 impact reveals disparate effect on different prepaid segments.
Mercator Advisory Group’s 17th annual prepaid market forecast clocks some big hits — and some growth.
Published on: December 9, 2020 Author: Mercator Research Team Alternate Point of Contact: Amy Dunckelmann
Mercator Advisory Group’s most recent report, 17th Annual U.S. Open-Loop Prepaid Cards Market Forecast 2020-2024, Part II, reveals that some verticals in open-loop prepaid show the capacity for growth, while others, including Campus, show drastic, and likely secular decline.
The Mercator Advisory Group forecast is derived from market knowledge gained through research done by Mercator since 2004.
However, even this archive of more than a decade of historical data provides little guidance on the future of markets that are growing rapidly and facing disruptive technology and services as well as historic new regulatory constraints. These factors, combined with dependence on funding sources tightly coupled to the economy and consumer sentiment, mean that the prepaid market is volatile and variable from one segment to another.
Considering the robust 2019 economy and new regulations that started April 1, 2019, followed by the social and economic disruption of 2020’s COVID-19 pandemic, the potential for dramatic shifts among prepaid card segments is readily apparent. Our findings for 2019, and our forecast for the future predict just this kind of volatility for some segments.
“Government funding is not necessary to the health of any given open-loop prepaid vertical, even if it doesn’t hurt,” said Theodore Iacobuzio, vice president and managing director Mercator’s research division. “For example, Open-Loop Restricted Access Network loads show secular growth into the new decade’s middle years.”
This report is 25 pages long and contains 16 exhibits.
Companies mentioned in the survey results shown include: Green Dot, Netspend, Monzo, Chime, Visa, Mastercard, Discover and American Express.
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Highlights of this report include:
Commercial & Enterprise Payments
Debit & Alternative Products
North American PaymentsInsights
Small Business PaymentsInsights
Fraud Experience PaymentsInsights
News & Events
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