BOSTON, Nov. 6, 2019 /PRNewswire-PRWeb/ -- The new research report by Mercator Advisory Group titled 16th Annual U.S. Open Loop Prepaid Cards Market Forecast, 2019–2023 provides an analysis of the growth and developments of the prepaid cards industry through 2023. The report examines loads, growth potential, and market dynamics in the United States across all open loop prepaid segments.
This report reviews and forecasts load dollar volume for open loop segments. This forecast highlights the segments approaching market saturation as well as those that will continue to experience double-digit annual growth. The report warns that of course the economy, politics, and consumer behavior will all influence which segments grow and which decline.
"Prepaid providers should be evaluating their businesses and looking for ways to move as many costs as possible to variable," C. Sue Brown, Director of Mercator Advisory Group's Prepaid Advisory Service, and author of the report, comments. "Opportunities in the prepaid market shift with economic and regulatory changes, causing segments to shift in volume from year to year. Because of these shifts, successful program managers will seek to achieve a variable cost structure to take advantage of the ups and the downs. It would be wise for program managers to explore new technologies as well, such as the internet of things and new use cases such as corporate disbursements, small business GPR cards, or insurance and health care claims, which will be the growth markets in the years to come."
Highlights of the report include:
- Growth in the open loop prepaid card market was positive in 2018, reaching 14.34% year-over-year (YOY).
- As Mercator Advisory Group had anticipated, there was high growth in Health Savings Accounts (HSAs) of 110.31% in 2018 and decline in Temporary Assistance for Needy Families (TANF) of -64.03 YOY.
- Mercator Advisory Group forecasts that growth in the open loop prepaid loads in the United States will be 2% through 2023, reaching a total of $402.8 billion. Declines in some segments and noteworthy growth in others have led Mercator Advisory Group to revise its expectations for the overall market.
- The payroll segment will be interesting this year as new free checking account options and payroll wage advance systems bifurcate the market.
This research report is 31 pages long and has 20 exhibits.
Companies and other organizations mentioned in this report include: ACE Hardware, Allstate, American Express, Blackhawk, ChexSystems, Chime Bank, Consumer Financial Protection Bureau, Devenir, Early Warning, Enservio, Farmers Insurance, Green Dot, H&R Block, InsurCard, Liberty Mutual, Mastercard, Monzo, Nationwide, Netspend, a division of Global Payments, PayPal, Safe Auto, State Farm, TeleCheck, Visa, and Walmart.
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.
Please visit us online at http://www.mercatoradvisorygroup.com.
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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 PaymentsJournal.com.
SOURCE Mercator Advisory Group
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