Embracing a Digital Future: Three Case Studies in Prepaid Card Distribution


New research from Mercator Advisory Group provides case studies of card mall companies to illustrate best practices for transitioning to digital distribution

Published on: July 23, 2014
Author: Ben Jackson
Alternate Point of Contact: Amy Dunckelmann


A new research report from Mercator Advisory Group, Embracing a Digital Future: Three Case Studies in Prepaid Card Distribution, examines the successful transition from offline to digital channels, including mobile, online, and virtual, made by the three major players in the card distribution market: Blackhawk Network Holdings Inc., epay (a division of Euronet Worldwide Inc.), and InComm. These case studies provide a road map that companies with traditional products and methods can follow to pivot and expand into the digital future.

The competitive landscape for all payments is rapidly changing with the emergence of new technologies and consumer preferences for virtual, digital, and mobile products. Companies are at risk of displacement if they don’t respond accordingly and update their businesses to embrace these technologies. The strategic decisions of the three companies profiled in this report have positioned them well to respond to these changing dynamics, and their decisions over the last three years are organized into separate categories, including entering new businesses, updating existing lines of business, and developing new technologies. How they achieved these goals is broken down in the report into various strategies that can be implemented across a variety of business types.

“The companies that have been largely dependent on plastic cards have found ways to prepare for a digital future,” said Ben Jackson, Director of Mercator Advisory Group’s Prepaid Advisory Service. “Their examples provide lessons for companies who need to adapt to new technologies.”

This report is 21 pages long and contains 10 exhibits.

Companies mentioned in this report include: Adility, Blackhawk Network, Boomerang, Boost Mobile, Cardpool, Coinstar, epay, Euronet, ezi-pay New Zealand, Giftango, Ibotta, ifeelgoods, InComm, InteliSpend, Magi.com, mFoundry, Money Online, Monitise, On-Line Strategies, PayPal, , Ria, Skymall Ventures, T-Mobile, Treater, Valve, Virtual Piggy, Xbox, Zeevex

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.

Highlights of the report include:

  • An introduction to the key consumer trends toward digital and their business implications
  • Case studies of the three largest card distributors and their digital strategies
  • A summary and evaluation of the key strategic decisions these companies have made over the past several years in order to address consumer trends
  • A best practices guide to start developing a comprehensive digital strategy



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