Open-Loop Prepaid Card Loads Increase as a Result of the Pandemic

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New research from Mercator Advisory Group shows which segments of the U.S. open-loop prepaid card market will grow and which will shrink through 2025.

One of the exhibits in this report.

Segments that displayed negative growth decreased as a consequence of COVID-19 induced impacts: decreased travel, physical location closures or delays in service amidst social distancing, and decreased consumer income. Consumers also purchased more digital open-loop gift cards.

The report titled 18th Annual U.S. Open-Loop Prepaid Cards Market Forecasts, 2020–2025 provides an analysis of the growth and development of the open-loop prepaid cards industry through 2025. The report examines loads, growth potential, and market dynamics in the United States across all open-loop prepaid card segments.

Mercator Advisory Group’s forecast report identifies key segments that will continue to decline over the next few years as well as those forecast to grow. The economy, regulation, consumer behavior, and the COVID-19 pandemic will all influence which segments grow and which decline.

"The pandemic has affected open-loop card loads differently by segment. Most of the growth in open-loop prepaid loads came from government benefits: state unemployment and stimulus programs. Segments that displayed negative growth decreased as a consequence of COVID-19 induced impacts: decreased travel, physical location closures or delays in service amidst social distancing, and decreased consumer income. Consumers also purchased more digital open-loop gift cards. As the pandemic subsides and government benefits cease in 2021, we expect a drop in open-loop loads for 2021, followed by a slight positive trend into 2025." commented David Nelyubin, Senior Analyst of Mercator Advisory Group's Prepaid Advisory Service, the author of the report.

Highlights of the report include:

  • Open-loop prepaid card load category market share in 2020.
  • Open-loop prepaid card loads, forecast, and analysis into 2025 by segment.
  • Effects of the COVID-19 pandemic on open-loop prepaid card market segments.

Companies and other organizations mentioned in the report include: Visa, Mastercard, American Express, U.S. Department of the Treasury, U.S. Travel Association, International Trade Administration, Green Dot, FDIC, Federal Register, University of Michigan, Western Union, PCMA, U.S. Census, College Crisis Initiative, CFPB, Ace Hardware, Social Security Administration, Administration for Children and Families, PEW, National Conference of State Legislatures, United States Department Of Labor Employment & Training Administration, Center on Budget and Policy Priorities, Federal Reserve, IRS, ADP.

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.

For more information and media inquiries, please call Mercator Advisory Group's main line: 781-419-1700, send email to media@mercatoradvisorygroup.com.

For free industry news, opinions, research, company information and more visit us at http://www.PaymentsJournal.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.

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Karen Yetter
@MercatorAdvisor
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