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--(BUSINESS WIRE)--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