Mercator Advisory Group Issues Prepaid Market Forecasts

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Using data derived from the 2004 and 2005 prepaid market benchmarks that investigated both the Open and Closed prepaid markets, Mercator has produced the prepaid industry's first four year forecast predicting the total spend and the total number of cards issued for market segments identified by Mercator. This report also delivers the first comparison of Open spending versus Closed spending for all relevant prepaid market segments, information critical to anyone planning a prepaid strategy since it identifies markets where Open Cards are gaining market share over Closed Solutions, where Closed Solutions remain dominant, and where the markets are expanding to embrace both solutions.

(PRWEB) August 10, 2005 – A new research report by Mercator Advisory Group on prepaid market forecasts discusses the load volume card forecast for 33 markets (open and closed).

Using data derived from the 2004 and 2005 prepaid market benchmarks that investigated both the Open and Closed prepaid markets, Mercator has produced the prepaid industry's first four-year forecast predicting the total spend and the total number of cards issued for market segments identified by Mercator. This report also delivers the first comparison of Open spending versus Closed spending for all relevant prepaid market segments. This information is critical to anyone planning a prepaid strategy since it identifies markets where Open Cards are gaining market share over Closed Solutions, where Closed Solutions remain dominant, and where the markets are expanding to embrace both solutions.

"While the recently released prepaid benchmark reports for Open and Closed solutions document underlying market dynamics, this report converts that information into a four year forecast of Open and Closed spending for all three markets," noted Tim Sloane, Director of Mercator Advisory Group's Debit Advisory Practice. "This forecast offers the industry its first consolidated view of the industry measuring Open cards, Closed Cards and other closed systems that include Transit, Telecommunications, Digital Media and even Utilities." Also included in this report is a total spend for each category in one consolidated table. This enables readers to extract growth rates for each sector and for the total market from Open and Closed systems.

Report Highlights:

  • Today, the Closed Market is almost 1,400 percent larger than the Open Market, but Open Solutions are growing so fast that the Closed Market is only 182 percent larger than Open in 2008.
  • Despite several markets that are shrinking, the Closed Solutions market will grow 112 percent between 2004 and 2008.
  • While there are several Open Segments that are also shrinking, the Open Solutions market will grow by 1,600% between 2004 and 2008, gaining significant ground on Closed Solutions.
  • The scenario that drives this growth in Open Solutions is heavily dependent on three segments performing as expected. Should the assumptions behind the growth of the Money & Open Gifts, Payroll, and FSA segments prove incorrect Open Segment growth may be far less than projected.    
  • After four years of growth, In Store Gift Cards remain the largest Closed Segment at $97.6 Billion while Payroll becomes the largest market segment for Open Solutions at $109.1 Billion.

Members of Mercator Advisory Group have access to these reports as well as the upcoming research for the year ahead, presentations, analyst access and other membership benefits. Please visit us online at http://www.mercatoradvisorygroup.com.

For more information call Mercator Advisory Group's main line: 781-419-1700.

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Robert Misasi
MERCATOR ADVISORY GROUP
781-419-1700
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