Prepaid Cards in the U.S. - Market Research, Industry Trends, Market Share, Consumer Insights


Published: 06/11/2020
Pages: 121
Full Study Price: US$ 4,750

Packaged Facts estimates that prepaid card payment value will reach $377 billion in 2020, up from $302 billion in 2016, which translates to an 5.7% average annual growth rate. Open-loop prepaid card purchase value is expected to grow to $212 billion, up an average of 7.6% from 2016 to 2020. Closed-loop prepaid card payment value is expected to value 3.5% annually, reaching $165 billion.

Packaged Facts estimates that prepaid card payment value will reach $475 billion in 2024, up from $377 billion in 2020, which translates to an 6% average annual growth rate. Open-loop prepaid card purchase value is expected to grow at an average rate of 6.3% during the period, led by continued growth in payroll, B2B, and medical card payment value and a return to moderate growth in gift card and customer refund and incentive card payment value. Closed-loop prepaid card purchase value is expected to grow at an average rate of 5.6% during the period, led by reloadable card payment value.

While open-loop general-purpose prepaid cards continue to generate the most purchase value, they also face significant growth headwinds. Conversely, three major commercial card segments (B2B, healthcare, and payroll) are expected to perform well over the next several years. Closed-loop prepaid card payment value has been driven by reloadable cards, particularly those that underlay an increasing array of app-based retailer loyalty and payment programs. While non-reloadable prepaid card payment value has also performed well, it faces strong near-term pandemic-related headwinds.

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Table Of Contents

  • Executive Summary
    • Report Scope
    • Report Summary
      • Market Size and Forecast
      • Coronavirus Pandemic Impact on the Prepaid Card Industry
      • App-Based Digital Banking Threatens GPR Prepaid Industry
      • Prepaid Card Use Trends
      • General-Purpose Reloadable Prepaid Card Feature and Use Rationales
      • Prepaid Card Marketer and Issuer Strategies
  • Market Size and Forecast
    • U.S. Prepaid Card Market Size and Forecast
      • Payment Value to Reach $377 Billion in 2020
        • Table U.S. Prepaid Card Market Size, 2016-2020
      • 2024 Payment Value Forecasted at $475.3 billion
        • Table U.S. Prepaid Card Market Size, 2016-2020
      • "Open-Loop" Prepaid Card Market Size, by Card Type
        • Table U.S. Open-Loop Prepaid Card Market Size: By Type, 2016-2020
      • "Closed-Loop" Prepaid Card Market Size, by Card Type
        • Table U.S. Closed-Loop Prepaid Card Market Size: By Type, 2016-2020
    • Growth Opportunity
      • Sideways/Down: Consumer General-Purpose Reloadable Prepaid Cards
      • Near-Term Declines; Long-Term Incremental Growth: Gift Cards
      • Strong Near-Term/Incremental Long-Term Growth: Government Prepaid Cards
      • Moderate-to-Strong Growth: Healthcare Cards
      • Near-Term Declines; Moderate-to-Strong Growth: Payroll Cards
      • Strong Growth: B2B Payments
  • Challenges and Opportunities
    • Coronavirus Pandemic Impact on the Prepaid Card Industry
      • General-Purpose Prepaid Card Spend to Take Discretionary & Non-Discretionary Hit
      • Near- and Long-Term: Prepaid Cardholder Cash Preferences to Give Way
        • Table Attitudes Toward Cash as Preferred Purchase Payment Method and Always Using Cash to Pay Bills, 2019 (general-purpose reloadable prepaid card vs. debit card vs. credit card users)
        • Table Attitudes Toward Cash as Preferred Purchase Payment Method and Always Using Cash to Pay Bills: General-Purpose Reloadable Prepaid Card Users by HH Income Bracket, 2019
      • Near- and Long-Term: In-Store Purchases Pressured and Online Purchases Benefit
      • Near- and Long-Term: The J-Hook Takes a Gut Punch
      • Near- and Long-Term: Interchange Wins
      • Near-Term: Stimulus Bump
      • Near-Term Winner: Government Benefits Programs
      • Near-Term Loser: Payroll Cards
      • Near-Term Loser: Tax Refund Cards
    • App-Based Digital Banking Threatens GPR Prepaid Industry
      • The Good: Prepaid Cards Adapt to Digital Banking World
      • The Spoiler? Fintech Marketers Undercut on Price and Deliver on Features
      • In Focus: Chime
        • Table Chime Account Fees, 2020
      • The Consequences
  • Prepaid Card Use Trends
    • General-Purpose Prepaid Card Use Trends: 2014-2019
      • Reloadable and Non-Reloadable Card Use Declines
        • Table General-Purpose Prepaid Card Use, 2014-2019 (reloadable vs. non-reloadable)
      • Lower-Income Adults Remain a Sweet Spot
        • Table General-Purpose Prepaid Card Use: By Age Bracket and HH Income Bracket, 2014-2019
      • Visa Leads Use but Mastercard Is Gaining Share
        • Table General-Purpose Prepaid Card Use Share by Card Network, 2014-2019
    • General-Purpose Reloadable Prepaid Card Use: 2014-2019
      • 18- to 34-Year-Olds as a Trouble Spot
        • Table General-Purpose Reloadable Prepaid Card Use Share by Age Bracket and HH Income Bracket, 2014-2019
      • Declines Are an Industry Trend, not a Network-Specific One
        • Table General-Purpose Reloadable Prepaid Card Use by Card Network, 2014-2019
    • General-Purpose Non-Reloadable Prepaid Card Use: 2014-2019
      • Middle-Income Traction
        • Table General-Purpose Non-Reloadable Prepaid Card Use: By Age Bracket and HH Income Bracket, 2014-2019
        • Table General-Purpose Non-Reloadable Prepaid Card Use by Card Network, 2014-2019
      • Bank Account, Smartphone, and Banking App Use Analysis
        • Table Bank Account, Smartphone, and Banking App Use: General-Purpose Reloadable Prepaid Card, Debit Card, and Credit Card Users (2014 vs. 2019)
    • General-Purpose Prepaid Card Brand and Card Network Brand Use
      • Overview
        • Table General-Purpose Prepaid Card Use by Card Brand/Network, 2018
      • Demographic Analysis
        • Table General-Purpose Prepaid Card Use by Card Brand/Network: By Age Bracket, 2018
        • Table General-Purpose Prepaid Card Use: By HH Income Bracket and Card Brand/Network, 2018
        • Table General-Purpose Prepaid Card Use by Card Brand/Network: By Credit Score, 2018
        • Table General-Purpose Prepaid Card Use: by Banked Status and Card Brand/Network, 2018
  • General-Purpose Reloadable Prepaid Card Feature and Use Rationales
    • General-Purpose Reloadable Prepaid Card Features Used
      • Table General-Purpose Reloadable Prepaid Card Features Used, 2018 vs. 2020 (percent of adults)
      • Money Movement and Payment Features: Demographic Analysis
        • Table General-Purpose Reloadable Prepaid Card Money Movement and Payment Features Used: By Age, 2020
        • Table General-Purpose Reloadable Prepaid Card Money Movement and Payment Features Used: By HH Income Bracket, 2020
        • Table General-Purpose Reloadable Prepaid Card Features Money Movement and Payment Features Used: By HH Income Bracket, 2020 (18-34 years old vs. 35+ years old)
      • Financial Management Features: Demographic Analysis
        • Table General-Purpose Reloadable Prepaid Card Financial Management Features Used: By Age Bracket, 2020
        • Table General-Purpose Reloadable Prepaid Card Financial Management Features Used: By HH Income Bracket, 2020
        • Table General-Purpose Reloadable Prepaid Card Financial Management Features Used: By HH Income Bracket, 2020 (18-34 years old vs. 35+ years old)
    • Reasons for Choosing Reloadable Prepaid Cards
      • Acceptance and No Fees Rule the Roost
        • Table Important Reasons for Choosing a Prepaid Card, 2018 vs. 2020
      • Influence of Direct Deposit on Card Use
        • Table Prepaid Card Reload, Monthly Fee, Withdrawal, and Purchase Behavior, 2018 vs. 2020
        • Table Prepaid Card Reload, Monthly Fee, Withdrawal, and Purchase Behavior: Direct Deposit vs. No Direct Deposit, 2020
        • Table Prepaid Card Reload, Monthly Fee, Withdrawal, and Purchase Behavior: By HH Income Bracket, 2020 (18-34 years old vs. 35+ years old)
  • Prepaid Card Marketer & Issuer Strategies
    • Axos Financial
      • Prepaid Card Programs
        • Table Axos Financial: General-Purpose Reloadable Prepaid Card Program Brands, Managers, and Networks, 2020
      • The Tax Man Cometh: H&R Block Prepaid Emerald Card and Related Products
      • The Card Leverages Ancillary Products to Grow
        • Table H&R Block Emerald Card: Active Cards, Deposits, and Revenue, with Per-Card Metrics, 2012-2016
      • H&R Block Revenue Trends Suggest Card Growth
        • Table H&R Block Revenue: Total, Refund Transfer, Emerald Card, and Emerald Advance, 2014-2019
      • Deposits Trends Suggest Emerald Card Growth
      • But Cardholder Engagement Remains a Struggle
        • Table Axos Financial, Inc. Prepaid Card Deposits: Q4 2015-2019 vs. Q1 2016-2020
      • Refund Advance Origination Trends Suggests Room to Grow
        • Table Axos Financial, Inc. Prepaid Card Deposits: Q4 2015-2019 vs. Q1 2016-2020
      • H&R Block Relationship Strongly Impacts Deposits
        • Table Axos Financial, Inc.: Number of Deposit Accounts by Type, 2013-2019
      • Prepaid Card Interchange Exemption Breach
    • The Bancorp, Inc.
      • Regional Lender and Prepaid Card Leader
      • Variety of Prepaid Card Programs, Program Managers, and Card Verticals
        • Table The Bancorp Bank: General-Purpose Reloadable Prepaid Card Program Brands, Managers, Networks, and Card Types, 2020
      • But Non-Prepaid Debit Fintech Partnerships Drive Growth
        • Table The Bancorp Bank: Non-Prepaid Debit Fintech Partnerships: By Name, Network Brand, and Launch Date, 2012-2020
      • And General-Purpose, Reloadable Cards Are Being Replaced
      • Healthcare a Bright Spot
      • Prepaid Card Deposits on the Rise
        • Table The Bancorp: Average Q4 Total and Prepaid Card Deposits, 2016-2019
      • Real-Time ACH Growth
      • Performance Trends
        • Table The Bancorp: Load Value and Selected Non-Interest Income Metrics, 2015-2019
      • Prepaid Card Growth Trends
    • Green Dot Corporation
      • Table Green Dot Consumer Product Features and Platform Capabilities, 2020
      • Market Segments
      • Operating Segments
        • Table Green Dot Operating Revenue by Segment, 2015-2019
      • Key Program Brands
        • Table Green Dot General-Purpose Reloadable Prepaid Card Program Brands and Networks, 2020
        • Table Green Dot General-Purpose Reloadable Prepaid Card Program Management-Only Brands and Networks, 2020
      • Key Relationship: Walmart
        • Table Green Dot Operating Revenue and Revenue Attributable to Walmart, 2015-2019
      • The Walmart MoneyCard
      • Stimulus Grab
      • Key Competitive Threat: Low-Cost App-Based Digital Banking
      • Key New Product: Unlimited by Green Dot
      • Key Service: BaaS
      • Key Performance Trends
        • Table Green Dot Active Cards, Cash Transfers, Load Value, Purchase Value, GPR Deposits, and Tax Refunds Processed, 2013-2019
        • Table Green Dot Active Cards, Cash Transfers, Load Value, Purchase Value, GPR Deposits, and Tax Refunds Processed: Percentage Annual Growth, 2014-2019
      • Key Revenue Trends
        • Table Green Dot Operating Revenue by Type, 2015-2019
      • Per-Card Revenue, Load Value, and Purchase Value Trends
        • Table Green Dot: Per-Card Prepaid Card Analysis: Revenue by Type, Load Value, and Purchase Value, 2015-2019
      • COVID Crunch
    • MetaBank
      • Card Brands and Segments
        • Table MetaBank General-Purpose Reloadable Prepaid Card Program Brands, Managers, and Networks, 2020
        • Table MetaBank Payroll Card Program Brands, Managers, and Networks, 2020
        • Table MetaBank Prepaid Card Program Brands, Managers, and Networks: By Card Type, 2020
        • Table MetaBank: Refund Transfer Fee and Tax Advance Metrics, 2016-2019
      • Performance Trends
        • Table MetaBank: Meta Payment Systems Deposit Analysis, 2015-2019
      • MPS Card Fee Income Stagnation and Decline
        • Table MetaBank: MPS Non-Interest Income, Card Fee, Deposit Fee, and Interchange Analysis, 2016-2019
    • Netspend
      • Overview
      • Competitive Positioning
      • Card Brands
        • Table Netspend Reloadable Prepaid Card Programs: Brands, Issuers, and Networks, and Card Types, 2020
      • Retail Distribution
      • Performance Trends
        • Table Netspend: Revenue, Active Cards, and Per-Card Revenue: By Revenue Stream and Direct Deposit Use, 2014-2019
        • Table Netspend Prepaid Card Load Value, 2014-2019
      • Debit Competition Affects Card Base and Masks Load Value Trends
        • Table Netspend: Active Cards and Load Value with Direct Deposit Share, 2014-2019
      • Direct Deposit Remains King
        • Table Netspend: Total and Per-Card Revenue and Load Value: By Card Direct Deposit Status, 2014-2019
      • COVID Crunch
  • Appendix
    • Methodology
      • Consumer Survey Methodology
      • Population Estimates
      • Prepaid Card Exemptions from Debit Card Interchange Limits
    • Abbreviations
      • Table Report Abbreviations, 2020
    • Terms and Definitions