Impact of COVID-19 on the U.S. Prepaid Cards Industry - Cash Conversion, Payment Electronification, Interchange and Deposits, as Well as Effects by Card Type - ResearchAndMarkets.com

DUBLIN--()--The "Prepaid Cards in the U.S., 7th Edition" report has been added to ResearchAndMarkets.com's offering.

The COVID-19 pandemic is reshaping the prepaid card industry.

As store closures hobble the mighty J-hook, and related trends push prepaid card users into the digital realm, these cash-loyal consumers find themselves choosing their card over cash and coins - and while short-term payment value pain hits most segments of the prepaid card market, long-term interchange fee revenue gains are in the making.

Of course, card type and other growth factors help shape the longer-term outcome: B2B prepaid cards, for example, continue their growth tear, while the proliferation of app-based prepaid digital accounts pressures consumer general-purpose reloadable prepaid card growth.

Overall, the publisher expects the prepaid card market to grow by a healthy 6% average annual rate from 2020 to 2024.

Prepaid Cards in the U.S., 7th Edition provides insight into significant near-term and longer-term factors shaping this varied and growing card segment. More specifically, this report:

  • Provides a market size and forecast for the prepaid card market, including trended payment value for general use (open-loop) and private label (closed-loop) prepaid cards, by card type, with related growth opportunity analysis
  • Assesses in detail the effects of the COVID-19 pandemic on the prepaid card industry, including cash conversion, payment electronification, interchange, and deposits, as well as effects by card type
  • Gauges (reloadable and non-reloadable) prepaid card use trends during 2014-2019, breaking prepaid card use down by card network; banked status; credit score; cash preference; and app and smartphone use
  • Identifies top general-purpose prepaid card brand and card network brands, by demographic
  • studies reasons for choosing general-purpose reloadable prepaid cards, including use cost; overdraft fee avoidance and debt management; credit and bank account substitution; breadth of acceptance; and reloading method
  • Explores prepaid card marketer and issuer strategies, including those of Axos Financial, The Bancorp Bank, Green Dot, MetaBank and Netspend
  • Analysis includes competitive positioning, new product introductions, company innovations, and trended performance analysis.
  • Heavy emphasis is placed on add-value proprietary estimates for load value, purchase value, and other metrics otherwise not published by these industry participants.
  • Thorough analysis of the app-based digital banking threat is also included.
  • Explores a variety of prepaid card industry challenges and solutions, including regulatory issues, pricing, and profit factors, broadening the target audience, bank account competition, and fraud

Companies Mentioned

  • Axos Financial
  • Green Dot Corporation
  • MetaBank
  • Netspend
  • The Bancorp, Inc.

Key Topics Covered

1. 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

2. Market Size and Forecast

  • U.S. Prepaid Card Market Size and Forecast
  • Payment Value to Reach $377 Billion in 2020
  • 2024 Payment Value Forecasted at $475.3 billion
  • "Open-Loop" Prepaid Card Market Size, by Card Type
  • "Closed-Loop" Prepaid Card Market Size, by Card Type
  • 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

3. 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
  • 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
  • The Consequences

4. Prepaid Card Use Trends

  • General-Purpose Prepaid Card Use Trends: 2014-2019
  • Reloadable and Non-Reloadable Card Use Declines
  • Lower-Income Adults Remain a Sweet Spot
  • Visa Leads Use but Mastercard Is Gaining Share
  • General-Purpose Reloadable Prepaid Card Use: 2014-2019
  • 18- to 34-Year-Olds as a Trouble Spot
  • Declines Are an Industry Trend, not a Network-Specific One
  • General-Purpose Non-Reloadable Prepaid Card Use: 2014-2019
  • Middle-Income Traction
  • Bank Account, Smartphone, and Banking App Use Analysis
  • General-Purpose Prepaid Card Brand and Card Network Brand Use
  • Overview
  • Demographic Analysis

5. General-Purpose Reloadable Prepaid Card Feature and Use Rationales

  • General-Purpose Reloadable Prepaid Card Features Used
  • Money Movement and Payment Features: Demographic Analysis
  • Financial Management Features: Demographic Analysis
  • Reasons for Choosing Reloadable Prepaid Cards
  • Acceptance and No Fees Rule the Roost
  • Influence of Direct Deposit on Card Use

6. Prepaid Card Marketer & Issuer Strategies

  • Axos Financial
  • Prepaid Card Programs
  • The Tax Man Cometh: H&R Block Prepaid Emerald Card and Related Products
  • The Card Leverages Ancillary Products to Grow
  • H&R Block Revenue Trends Suggest Card Growth
  • Deposits Trends Suggest Emerald Card Growth
  • But Cardholder Engagement Remains a Struggle
  • Refund Advance Origination Trends Suggests Room to Grow
  • H&R Block Relationship Strongly Impacts Deposits
  • Prepaid Card Interchange Exemption Breach
  • The Bancorp, Inc.
  • Regional Lender and Prepaid Card Leader
  • Variety of Prepaid Card Programs, Program Managers, and Card Verticals
  • But Non-Prepaid Debit Fintech Partnerships Drive Growth
  • And General-Purpose, Reloadable Cards Are Being Replaced
  • Healthcare a Bright Spot
  • Prepaid Card Deposits on the Rise
  • Real-Time ACH Growth
  • Performance Trends
  • Prepaid Card Growth Trends
  • Green Dot Corporation
  • Market Segments
  • Operating Segments
  • Key Program Brands
  • Key Relationship: Walmart
  • 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
  • Key Revenue Trends
  • Per-Card Revenue, Load Value, and Purchase Value Trends
  • COVID Crunch
  • MetaBank
  • Card Brands and Segments
  • Performance Trends
  • MPS Card Fee Income Stagnation and Decline
  • Netspend
  • Overview
  • Competitive Positioning
  • Card Brands
  • Retail Distribution
  • Performance Trends
  • Debit Competition Affects Card Base and Masks Load Value Trends
  • Direct Deposit Remains King
  • COVID Crunch

For more information about this report visit https://www.researchandmarkets.com/r/z0jarg

Contacts

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press@researchandmarkets.com
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Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
press@researchandmarkets.com
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900