Merchants have high expectations for the growing prepaid market, and prepaid providers and merchants will benefit by creating new features and adding value.
Boston, July 9, 2012 – A new report from Aite Group discusses merchants’ marketing priorities for prepaid cards. Based on an April 2012 Aite Group survey of 41 merchants and 21 prepaid providers, the report details merchant perceptions of prepaid card growth by distribution channels, marketing strategies, product features, and attitudes toward open- and closed-loop products.
A wide array of merchants sell prepaid card products, including open-loop (“branded”) and closed-loop (“private label”) cards. Merchants have different needs from and goals for prepaid products, and a one-size-fits-all approach to product features will not fulfill their varying marketing initiatives. Merchants agree that prepaid cards are growing across three primary distribution channels: stores, online, and mobile. To capitalize on this growth while meeting the myriad needs of merchants, prepaid providers should segment their merchant portfolios to provide and develop an array of product features and marketing strategies.
“The good news for merchants and prepaid providers is that there is plenty of opportunity in the prepaid market,” says Madeline K. Aufseeser, senior analyst with Aite Group and co-author of this report. “Organic opportunity for growth exists in stores, online, and via mobile as well as in merchant penetration. As prepaid cards become a mass-market product, more merchants will embrace selling not only cards, but a wider menu of features on various card products."
This 21-page Impact Note contains 14 figures and one table. Clients of Aite Group’s Retail Banking service can download the report.