New York, Feb. 24, 2023 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Prepaid Card Global Market Report 2023" - https://www.reportlinker.com/p06277935/?utm_source=GNW
The global prepaid card market will grow from $15 billion in 2022 to $16.32 billion in 2023 at a compound annual growth rate (CAGR) of 8.8%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, surge in commodity prices, and supply chain disruptions, causing inflation across goods and services effecting many markets across the globe. The prepaid card market is expected to grow to $21.7 billion in 2027 at a CAGR of 7.4%.
The prepaid cards market consists of revenues earned by entities that are engaged in storing, processing and transmitting prepaid card data.Prepaid cards may be open-loop or closed-loop.
While an open-loop prepaid card can be used at any locations accepting cards, a closed-loop prepaid card can only be used at certain locations such as a specific store or a group of stores.Revenue generated from the cards market include all processing and service fees levied by banks and financial institutions for processing card-based payments.
The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
Prepaid cards are preloaded payment cards issued by financial institutions that can be used to make both online and in-store payments. Once the amount loaded on the card is used, it may be disposed (non-reloadable prepaid card) or reloaded (reloadable prepaid card) by the cardholder.
The Asia Pacific was the largest region in the prepaid card market in 2022.Western Europe was the second largest market in the prepaid card market.
The regions covered in the prepaid card market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.
The main types of prepaid cards are general-purpose reloadable cards, prepaid gift cards, government benefit cards, payroll cards, and other types.The general purpose Reloadable cards can be used as debit cards for retail purposes and are used for depositing online payments.
The various card types are open-loop prepaid cards and closed-loop prepaid cards. The cards are used in retail establishments, corporate institutions, government establishments and other establishments.
Increasing the use of prepaid cards as a substitute for traditional bank cards is a key factor driving the growth of the prepaid card market.A prepaid card is not connected to a bank checking account or a draught account for a credit union share; instead, users invest money in advance deposited into the prepaid card account.
According to the Reserve Bank of India, debit card payments in 2021 reached 412 crore.Prepaid cards are similar to debit cards and permit the consumer to spend money up to the amount loaded on the card for making purchases, paying gas bills, shopping, and paying online bills.
Therefore, increasing usage of prepaid cards is expected to propel the growth of the prepaid card market in the coming years.
The increasing incidents of fraudulent cases are expected to hamper the growth of the prepaid card market in the coming years.Card fraud losses are sustained on all credit, debit, prepaid general-purpose, and private-label payment cards distributed around the world by payment card issuers, retailers, purchasers of card purchases from retailers, and acquirers of card transactions at ATMs.
For instance, according to the Aite Group, a company that provides insurance services, in 2020, 47% of Americans experienced financial theft and found that losses from these identity theft cases cost $502.5 billion in 2019 and increased 42 percent in 2020, totaling $721.3 billion in 2021. Therefore, the increasing incidences of fraud restrain the growth of the prepaid market.
Major players operating in the industry are undertaking various strategic initiatives such as partnerships and collaborations, which are gaining significant popularity in the prepaid card market.Companies are collaborating with other market players to offer prepaid cards with flexible credit limits to attract a large consumer base for prepaid cards.
For instance, in November 2020, MobiKwik collaborated with the American Express (Amex) card network to introduce its first virtual prepaid payment card with a flexible credit limit. With the launch of the prepaid payment card, MobiKwik becomes the first non-bank in India to issue cards.
In June 2022, Rewire, an Israel-based prepaid debit card provider, acquired Imagen for an undisclosed amount.The acquisition would complement the company’s offerings and expand its portfolio.
Imagen is an Israel-based pre-paid card company providing pre-paid cards to immigrants.
The countries covered in the prepaid card market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.
The market value is defined as the revenues that enterprises gain from goods and/or services sold within the specified market and geography through sales, grants, or donations in terms of currency (in USD ($) unless otherwise specified).
The revenues for specified geography are consumption values – that is, they are revenues generated by organizations in the specified geography within the specified market, irrespective of where they are produced. It does not include revenues from resales either further along the supply chain or as part of other products.
The prepaid card research report is one of a series of new reports that provides prepaid card statistics, including prepaid card industry global market size, regional shares, competitors with prepaid card share, detailed prepaid card segments, market trends and opportunities, and any further data you may need to thrive in the prepaid card industry. This prepaid card research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
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