US Prepaid Card Market Analysis Report 2023: The Spoiler

DUBLIN, 17 May 2023 /PRNewswire/ —

Research and markets

The “Prepaid Cards in the US, 8th Edition” report has been added ResearchAndMarkets.com’s Offering.

American consumers will spend 468 billion dollars with its prepaid debit cards in 2023, upwards 377 billion dollars in 2020 and 302 billion dollars in 2016. Another 284 billion dollars will be applied to B2B prepaid cards.

The new market research report “Prepaid Cards in the United States” presents an in-depth analysis of the opportunities and challenges facing the companies participating in the prepaid card segment, whether they are card managers, marketers or issuers. Forecasts for each of the major prepaid card categories are also included.

The adaptability of prepaid debit cards is manifested in the ever-growing list of commercial sectors finding them to be the right products to solve their debt needs. The cards are more secure than cheques, can be reloaded for ongoing use and create a direct relationship between companies and customers or employees.

The use case for prepaid debit cards as payroll cards, health care account spending tools, business expense tracking and government disbursement assistance continues to strengthen with growth in each of these categories. These prepaid debit cards will represent 373 billion dollars in consumption in 2023.

Each prepaid debit card segment is growing with a decline in demand only for general purpose reloadable (GPR) cards managed by marketers, such as Netspend or Green Dot.

The GPR prepaid debit card has provided an exit from cash-only use for the 20% of Americans who are underbanked and provided an on-ramp to digital commerce for Americans who are unbanked or who don’t want to use their own credit or debit cards online . These open-loop prepaid cards, which run on the major card networks, also have access to savings and money management tools to help create more financial opportunities for their holders.

While consumers will spend almost 100 billion dollars in 2023 using GPR prepaid debit cards, product growth is hampered by the divergent paths taken by marketers and issuers. Some prepaid card marketers and issuers have found that they can generate greater long-term revenue by folding GPR prepaid card programs into the new account programs of their Denovo banks.

These new banks are attacking GPR prepaid card use by offering no monthly account fees and no overdraft. Publisher surveys have found that bank account fees are unfortunate for GPR cardholders, so these fee-free presentations may well resonate with them.

For fintechs and issuers, bank deals facilitate access to low-cost funds (through deposits) that they bundle with high-value services, including automatic savings and savings accounts that pay extremely high interest rates (eg Chime pays 2% on traditional savings accounts). However, these new operators are banks, which means that consumers who cannot or do not want to participate in the banking system will continue to use GPR cards.

Key topics covered:

CHAPTER 1: SUMMARY

• Scope of the report
• Report summary
• Market size and forecast
• Growth opportunity
• Pandemic payment changes continue to affect the use of cash
• Digital channel for card acquisition and purchase
• Tpp-based digital banking threatens GPR prepaid industry
• Broad characteristics of the payment industry
• Pay before – Prepaid
• Pay now – Cash and PIN debit
• Pay later – Consumer credit
• Status of traditional consumer payments
• In 2022, credit card outstandings finally surpassed those in 2019
• Long-term payment trends accelerated
• Long-term payment trends undiminished
• Public GPR programs
• US Bank’s ReliaCard mobile app
• Salary card
• GPR Rewards
• Kroger Rewards Prepaid Debit Card
• PayPal Prepaid Mastercard
• Operate American Express Prepaid Debit Account
• Trends in the use of prepaid cards
• Prepaid Card Marketer and Issuer Strategies
• The Bancorp, Inc.
• Green Dot Corporation
• Walmart MoneyCard
• The bottom line
• Pathward Financial
• Prepaid card programs

CHAPTER 2: MARKET SIZE AND FORECAST

• US Prepaid Card Market Size and Forecast
• Payment value to reach 468 billion dollars in 2023
• 2024 Payment value is estimated to 475.3 billion dollars
• Market size for open-loop and closed-loop prepaid cards, by card type
• GROWTH OPPORTUNITY
• Sideways/down: Prepaid cards for general consumer use
• Long-term incremental growth: gift cards
• Strong near-term/very modest long-term growth: public prepaid cards
• Moderate to strong growth: health card
• Moderate growth: Salary card
• Strong growth: B2B payments

CHAPTER 3: CHALLENGES AND OPPORTUNITIES

• General prepaid card spending to take discretionary and non-discretionary hits
• Near and long term: Prepaid cardholders’ cash preferences to slowly recede
• Short and long-term: Advantages of buying in store and buying online
• Short and long-term: Decline in sales in stores
• Near and long term: Exchange wins
• Long-term winner: Salary card
• Long-term loser: Prepaid tax refund cards
• APP-BASED DIGITAL BANK THREATS GPR PREPAID INDUSTRY
• The good: Prepaid cards are adapting to the digital banking world
• The spoiler? Fintech marketers undercut price and deliver features
• In focus: Carillon
• Potentially and realistically free to use
• Savings Innovation
• The big picture
• The consequences of the latest iteration of Neobanks
• In focus: SoFi
• Several savings vaults allow for more savings targets
• SoFi’s bank charter drives BaaS growth
• SoFi and Samsung

CHAPTER 4: USAGE TRENDS FOR PREPAID CARDS

• Pandemic prepaid card distribution effect persists
• General trends in the use of prepaid cards: 2023
• A note about the data
• Lower-income adults remain in a good place

CHAPTER 5: GENERAL UPLOADABLE PRE-HAND CARDS AND REASONS FOR USE

• GENERAL PURPOSE USED FUNCTIONS FOR TOPLOADABLE PREPAID CARDS
• Money movement and payment functions: Demographic analysis
• REASONS TO CHOOSE RECHARGEABLE CARDS
• Customer service and online shopping Drive Card selection
• Impact of direct deposit on card use

CHAPTER 6: PREPAID CARD STRATEGIES FOR MARKETERS AND ISSUERS

• ISSUER ASSET SIZE DRIVES PREPAID CARD MARKETING CHOICES
• Note: Axos Financial
• PATHWARD
• Meta Bank renamed to Pathward
• Pathward prepaid card programs
• The Tax Man Cometh: H&R Block Prepaid Emerald Card and related products
• The Emerald Card leverages additional products to grow
• Gran Mobile Banking is offered through Pathward
• H&R Block is moving prepaid cardholders to its new banking app, Spruce
• BANCORP BANK
• Special lender and prepaid card manager
• Strong growth in 2022 brings Bancorp to 150 million active cards
• Future growth is payments and partners
• Networks and card types, 2022
• But non-prepaid debit Fintech partnerships are driving growth
• Healthcare a bright spot
• GREEN DOT CORPORATION
• Market segments
• Deposit account programs
• Key programmer marks
• Key Relationship: Walmart
• Walmart MoneyCard
• Savings, budget and direct deposit functions
• Key competitive threat: Low-cost app-based digital banking
• New key product: Unlimited by Green Dot
• Key service: BaaS
• Apple Cash
• Uber
• Intuit
• Wealth front
• NETWORK SPEND
• Overview

Companies mentioned

• American Express
• apple
• Axos Financial
• Green Dot Corporation
• Intuit
• Taverns
• Pathward
• PayPal
• Samsung
• SoFi
• The Bancorp, Inc.
• Uber
• american bank
• Walmart
• Wealth front

For more information on this report visit

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