Existing prepaid card programs have most potential and scale in markets where they provide a better alternative to existing payment tools. Globally, numerous small-scale prepaid programs exist, but they do not yet add up to a sizable market overall. However the market is now adapting, and introducing more targeted and niche products. This is likely to lead to growth in the near future.
Features and benefits
- Benchmark your performance against the penetration levels and best practice examples of prepaid cards from around the globe.
- Plan your product strategy around analysis of consumer attitudes to prepaid cards, from Datamonitor's Financial Services Consumer Insight survey.
- Get the latest information on the most recent and interesting developments in prepaid and see how this can be applied in your business.
Despite some success stories such as in Italy and Singapore where prepaid cards provide a better payment alternative, lack of consumer demand has hindered growth in most markets. Consumers feel they either do not need one, or do not feel prepaid can offer them any benefits.
Within targeted product offerings, travel and the unbanked sectors offer the most opportunities in prepaid cards offered directly to consumers. There is also scope to build prepaid issuer-retailer relationships, where prepaid can be used for everything from gift cards, to the most rudimentary financial services to the unbanked.
Non-banking providers are currently driving innovation and prepaid issuers must back the shift to mobile services since more capabilities and applications are expected to become available in line with wider developments in mobile and NFC.
Your key questions answered
- Who are prepaid cardholders and which consumer groups should be targeted?
- What are consumer attitudes to prepaid cards? How are prepaid cards used?
- What is stopping growth in prepaid cards and how this can be addressed?
- Which global markets and prepaid products have been the most succesful?
- Which consumer groups and product types provide most opportunities in the future?