Card Malls Proving to Be a Critical Channel for Getting Prepaid Cards Into Consumers’ Hands

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New research from Mercator Advisory Group shows the growth in card mall loads in the United States and how that load is distributed across multiple segments.

One of the 8 exhibits in this Research Note.

Card malls represent an important distribution channel for prepaid providers of all types, because they provide convenience and a way to turn cash into digital currency.

A new research note from Mercator Advisory Group, Prepaid Card Mall Volumes Continue to Grow in the U.S., examines the size and diversity of prepaid loads through card malls hosted in third-party retailers’ locations. The convenience and variety of cards offer consumers a way to buy gifts, access financial services, and obtain cell phone service.

The total dollars loaded through card malls grew at a pace of 19% in 2013. This growth indicates the importance of the channel to shoppers and shows why prepaid providers should consider card malls as part of their overall prepaid distribution strategy.

“Card malls represent an important distribution channel for prepaid providers of all types, because they provide convenience and a way to turn cash into digital currency,” said Ben Jackson, Director of Mercator Advisory Group’s Prepaid Advisory Service and author of report.

Highlights of the report include:

  • Estimates of the market size in the United States for prepaid loads made through card malls hosted by other retailers
  • Diversity of cards and services prepaid card malls despite common perception as “gift card malls”
  • Discussion of continued steady pace of growth for the card mall business, which provides an anchor point for digital services that are delivered via PIN on receipt

This report is 10 pages long and contains 8 exhibits.

Companies mentioned in this report include: American Express, Blackhawk Network, Discover, epay, Euronet WorldWide Inc., Green Dot, InComm, MasterCard, and Visa.

Members of Mercator Advisory Group's Prepaid Advisory Service have access to this report as well as the upcoming research for the year ahead, presentations, analyst access, and other membership benefits.

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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. Mercator Advisory Group is also the publisher of the online payments and banking news and information portal

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Brent Watters
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