Abstract
Boston, MA -- The report, ‘Eighth Annual Prepaid Market
Forecast 2011 to 2014’, is the last of Mercator's annual trilogy of
closely followed prepaid benchmark reports (Open-Loop, Closed-Loop, and
Prepaid Market Forecast) that provide thorough analysis and documentation of
the growth and development of the prepaid industry. It benchmarks the load,
growth, and market dynamics for all prepaid solutions.
Research for this benchmark indicates that the prepaid market continues to
have strong growth despite the economic turmoil and increased legislative and
regulatory action. This growth has been sustainable because of the diversity
of the prepaid market. However, the research also indicates that the overall
prepaid growth rate has slowed -- and this forecast identifies several
segments that will reach market saturation within the four year forecast
horizon of 2014.
This report reviews activity and shifts for open and closed-loop segments
respectively. All 18 open-loop and mixed segments are identified and measured
individually within this report. This report highlights the segments that are
approaching market saturation as well as those will continue to experience
high annual growth of between 20 and 70 percent. This forecast also reflects
updated market sizing for the closed-loop market based on new data collected
from merchants.
“Having now performed eight prepaid forecasts, Mercator Advisory Group
has learned not to generalize about the prepaid market. GPR is not a product,
it is a technology. Products designed to sell into government disbursements;
Reloadable Incentives, Bank Turndown Solutions, Family Budgeting Tools,
Payroll, and serving the Unbanked and Underserved, are all unique. Each
product has a very different set of product requirements, go-to-market cost
structures, sales cycles, and growth rates.” Tim Sloane, vice
president of Client Services, director of Mercator Advisory Group's Prepaid
Advisory Service, and author of the report comments. “In addition, the
cost of executing a prepaid program continues to rise due to increased
regulation which is occurring simultaneously with margin compression, driven
by a fiercely competitive market.”
Highlights of the report include:
- Updated market figures based on new data collected from merchants in 2010.
- Which closed-loop segments have grown faster than previously predicted.
- Adjustments to the open-loop segments most likely to be impacted from new
regulations and guidance from the Federal Reserve Board, FinCEN, and OCC.
- The key prepaid open-loop segments that will continue to grow faster than
other payment types despite adjustment for slower growth rates.
- New projections for the date when the open-loop market will exceed
closed-loop.
- Updated projections of the 2012 total prepaid market size and new
forecasts of the loads in the open-loop market.
One of the 67 figures from the 51 page report:
About Mercator Advisory Group
Mercator Advisory Group is the leading, independent research and
advisory services firm exclusively focused on the payments and banking
industries. We deliver pragmatic and timely research and advice designed to
help our clients uncover the most lucrative opportunities to maximize revenue
growth and contain costs. Our clients range from the world's largest payment
issuers, acquirers, processors, merchants and associations to leading
technology providers and investors.
Table of Contents
Executive Summary
Introduction
- Data Pertaining to Cards Issued
- Network-Branded Market Segment Load Forecast
- Closed Market Spend Forecast
Prepaid Open-Loop Forecast
- Network-Branded Travel Cards
- Money & Financial Services Cards
- Network-Branded Gift Cards
- Remittance & P2P
- Open-Loop Events & Meetings
- Open-Loop Employee & Partner Incentives
- Open-Loop Consumer Incentives
- Open-Loop Campus
- Open-Loop In-Store Gift Cards
- Open-Loop Social Security Disbursement
- Open-Loop TANF & WIC Disbursement
- Open-Loop Court Ordered Payments
- Open-Loop Transit
- State Unemployment
- Insurance Cards
- Payroll Cards
- Open-Loop Benefits Cards
- FSA/HSA Cards
Closed-Loop Card Forecasts
- Closed-Loop Events & Meetings
- Closed-Loop Employee & Partner Incentive Cards
- Closed-Loop Consumer Incentive Cards
- Closed-Loop Campus Cards
- Digital Media Cards
- Games & Ring Tones
- Closed-Loop In-Store Gift Cards
- Nutrition Assistance (Formerly Food Stamp & WIC EBT Cards)
- Closed-Loop Temporary Assistance for Needy Families (TANF) EBT Cards
- Closed-Loop Prison Cards
- Transit Cards
- Closed-Loop Benefits Cards
- Petroleum Cards
- Utilities
- Prepaid Mobile Minutes
- Prepaid Long Distance Minutes
Conclusion
Table of Figures
- Figure 1: Open-Loop and Closed-Loop Performance 2006 to 2014
- Figure 2: Forecast Chart For All Open-Loop Segments 2007 to 2014
- Figure 3: Forecast Chart For All Closed-Loop Segments 2007 to 2014
- Figure 4: Forecast of Load on Network-Branded Travel Cards to 2014
- Figure 5: Forecast of Network-Branded Travel Cards Issued to 2014
- Figure 6: Forecast of Open-Loop Money and Financial Services Load to 2014
- Figure 7: Forecast of Open-Loop Money and Financial Services Cards Issued
to 2014
- Figure 8: Forecast of Load on Open-Loop Gift Cards to 2014
- Figure 9: Forecast of Network-Branded Gift Cards Issued to 2014
- Figure 10: Forecast of Load on Remittance Cards to 2014
- Figure 11: Forecast of Remittance Cards Issued to 2014
- Figure 12: Forecast of Load on Open-Loop Events & Meeting Cards to 2014
- Figure 13: Forecast of Open-Loop Events & Meeting Cards Issued to 2014
- Figure 14: Forecast of Load on Open-Loop Employee & Partner Incentives
Cards to 2014
- Figure 15: Forecast of Open-Loop Employee & Partner Incentives Cards
Issued to 2014
- Figure 16: Forecast of Load on Open-Loop Consumer Incentive Cards to 2014
- Figure 17: Forecast of Open-Loop Consumer Incentive Cards Issued to 2014
- Figure 18: Forecast of Load on Open-Loop Campus Cards to 2014
- Figure 19: Forecast of Open-Loop Campus Cards Issued to 2014
- Figure 20: Forecast of Load on Network Branded In-Store Gift Cards to 2014
- Figure 21: Forecast of Open-Loop In-Store Gift Cards Issued to 2014
- Figure 22: Forecast of Load on Open-Loop Social Security Cards to 2014
- Figure 23: Forecast of Open-Loop Social Security Cards Issued to 2014
- Figure 24: Forecast of Load on Open-Loop TANF & WIC Cards to 2014
- Figure 25: Forecast of Network-Branded TANF & WIC Cards Issued to 2014
- Figure 26: Forecast of Load on Open-Loop Court Ordered Payment Cards to
2014
- Figure 27: Forecast of Open-Loop Court Ordered Payment Cards Issued to 2014
- Figure 28: Forecast of Load on Open-Loop Transit Payment Cards to 2014
- Figure 29: Forecast of Open-Loop Transit Cards Issued to 2014
- Figure 30: Forecast of Load Placed On Open-Loop State Unemployment Cards
to 2014
- Figure 31: Forecast of Open-Loop State Unemployment Cards Issued to 2014
- Figure 32: Forecast of Load Placed On Open-Loop Insurance Cards to 2014
- Figure 33: Forecast of Open-Loop Insurance Cards Issued to 2014
- Figure 34: Forecast of Load Placed On Open-Loop Payroll Cards to 2014
- Figure 35: Forecast of Open-Loop Payroll Cards Issued to 2014
- Figure 36: Forecast of Load Placed on Open-Loop Benefit Cards to 2014
- Figure 37: Forecast of Open-Loop Benefit Cards Issued to 2014
- Figure 38: Forecast of Load Placed On FSA/HSA Cards to 2014
- Figure 39: Forecast of FSA/HSA Cards Issued to 2014
- Figure 40: Forecast of Load Placed On Events & Meeting Cards to 2014
- Figure 41: Forecast of Closed-Loop Events & Meetings Cards Issued to 2014
- Figure 42: Forecast of Load Placed On Employee & Partner Incentive Cards
to 2014
- Figure 43: Forecast of Closed Employee & Partner Incentives Cards Issued
to 2014
- Figure 44: Forecast of Load on Closed-Loop Consumer Incentive Cards to 2014
- Figure 45: Forecast of Closed-Loop Consumer Incentive Cards Issued to 2014
- Figure 46: Forecast of Load on Closed-Loop Campus Cards to 2014
- Figure 47: Forecast of Closed-Loop Campus Cards Issued to 2014
- Figure 48: Forecast of Load on Closed-Loop Digital Media Cards to 2014
- Figure 49: Forecast of Load on Closed-Loop Games & Ring Tones Cards to 2014
- Figure 50: Forecast of Load on Closed-Loop, In-Store Gift Cards to 2014
- Figure 51: Forecast of Closed-Loop, In-Store Gift Cards Issued to 2014
- Figure 52: Forecast of Load on Closed-Loop Nutrition Assistance to 2014
- Figure 53: Forecast of Nutrition Assistance Cards Issued to 2014
- Figure 54: Forecast of Load on Closed-Loop TANF EBT Cards to 2014
- Figure 55: Forecast of TANF EBT Cards Issued to 2014
- Figure 56: Forecast of Load on Prison Cards to 2014
- Figure 57: Forecast of Closed-Loop Prison Cards Issued to 2014
- Figure 58: Forecast of Load on Closed-Loop Transit Cards to 2014
- Figure 59: Forecast of Load on Closed-Loop Benefits Cards to 2014
- Figure 60: Forecast of Closed-Loop Benefit Cards Issued to 2014
- Figure 61: Forecast of Load on Closed-Loop Petroleum Cards to 2014
- Figure 62: Forecast of Closed-Loop Petroleum Cards Issued to 2014
- Figure 63: Forecast of Load on Closed-Loop Utility Metering Solutions to
2014
- Figure 64: Forecast of Load on Prepaid Mobile Minutes to 2014
- Figure 65: Forecast of Prepaid Mobile Minutes Cards Issued to 2014
- Figure 66: Forecast of Load on Prepaid Long Distance to 2014
- Figure 67: Forecast of Prepaid Long Distance Cards Issued to 2014
