Unbanked Consumers Spur Growth in Prepaid Cards Market, According to New Report by Global Industry Analysts, Inc.

GIA announces the release of a comprehensive global report on Prepaid Cards markets. Global market for Prepaid Cards is projected to reach US$2.1 trillion by 2018, driven by rising demand from unbanked consumers and the financial services sector.

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Prepaid Cards: A Global Strategic Business Report

San Jose, California (PRWEB) May 07, 2013

Follow us on LinkedIn – Prepaid cards represent an attractive proposition in the payment industry owing to their inherent flexibility and convenience. Prepaid cards are gradually evolving into a mainstream market driven by widening acceptance. The market registered strong growth despite the challenging economic environment, driven by the increase in number of consumers without access to credit cards and bank accounts. These cards act as portable checking account, but entail lesser risk when compared to loans and credit cards. The market is expected to witness growth supported by a host of factors such as rise in the number of consumers preferring payment cards over traditional banking, entry of new brands, and pull back of free checking facility for low balance consumers by banks. Moreover, with credit card interest rates rising each year, consumers are shifting to alternate payment modes such as prepaid cards. Another growth driver is e-commerce as consumers use prepaid cards instead of credit or debit cards for making online purchases.

Prepaid Cards are offering stiff competition to debit cards, especially payroll and general purpose re-loadable cards. Banks are also actively adopting prepaid cards. With prepaid cards, banks can provide improved facilities to prospective customers, recover lost revenues on low-balance account holders, and overcome the recently mandated loss of overdraft fee income and interchange. Prepaid gift cards and prepaid payroll cards are other areas with favorable growth prospects.

As stated by the new market research report on Prepaid Cards, the United States represents the single largest market worldwide. The tremendous potential in direct deposit account and payments markets are expected to spur market growth. Asia-Pacific represents the fastest growing regional market with a projected CAGR of 19% over the analysis period. Growth is supported by improved economic outlook and increase in per capita consumer spends.

Closed loop prepaid cards represents the largest market segment in terms of card load. However, open loop prepaid cards are expected to grow at a faster rate through 2018. Network-branded open loop prepaid cards are gaining wider acceptance among global investors, with growth largely fuelled by the popularity of general purpose reloadable cards, government disbursement cards and payroll cards.

Major players covered in the report include American Express Company, Axis Bank Limited, The Bancorp Bank, Blackhawk Network Inc., Caxton FX Limited, Edenred S.A., Green Dot Corporation, InteliSpend Prepaid Solutions LLC, Inter National Bank, Itz Cash Card Ltd., MasterCard Inc., MetaBank Inc., Mint Technology Corporation, NetSpend Corporation, Travelex Group Limited, Visa Inc., The Western Union Company, Wal-Mart Stores Inc., and WEX Inc.

The research report titled “Prepaid Cards: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections for all major geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Russia and Rest of Europe), Asia-Pacific (China and Rest of Asia-Pacific), Latin America (Brazil and Rest of Latin America), and Rest of World. The market is analyzed by the segments - Closed Loop Prepaid Cards and Open Loop Prepaid Cards.

For more details about this comprehensive market research report, please visit –
http://www.strategyr.com/Prepaid_Cards_Market_Report.asp

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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Global Industry Analysts, Inc.
Telephone: 408-528-9966
Fax: 408-528-9977
Email: press(at)StrategyR(dot)com
Web Site: http://www.StrategyR.com/

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