While the branded prepaid card market is experiencing substantial growth, it remains a market fraught with challenges.
Boston, MA, March 2, 2010 – A new report from Aite Group, LLC examines the prepaid market, including current trends and challenges impacting the space. The report also provides market sizing and forecasts market growth through 2014.
The branded prepaid card market is growing despite the poor U.S. economy and a regulatory environment increasingly critical of the payments industry. Though Aite Group expects the value of branded prepaid cards to reach US$69 billion in 2010, up from US$54 billion in 2009, the market faces challenges. Certain prepaid card segments continue to outperform others, and key market players have taken a wait-and-see attitude toward investment, depending on which card features and functionalities prove themselves most popular and profitable.
"The branded prepaid market is young, but has managed to grow very quickly," says Adil Moussa, analyst with Aite Group and author of this report. "The market faces a number of challenges today, including an expanding regulatory environment and technology that struggles to keep up with the growing space. Educating stakeholders is the one thing market players can control, and they need to do a better job. Through education, they can reach legislators that don't necessarily understand the product as well as consumers unfamiliar with the product's value."
This 31-page Impact Report contains 11 figures and two tables. Clients of Aite Group's Retail Banking service can download the report.