Wednesday, 31 May 2023

JUNIPER RESEARCH: DIGITAL PREPAID CARD USAGE TO SURGE, AS THE VALUE OF TRANSACTIONS GROWS 650% GLOBALLY BY 2028

BASINGSTOKE, England, May 31 (Bernama-BUSINESS WIRE) -- A new study from Juniper Research, the foremost experts in payments, has found that the value of digital prepaid card transactions will exceed $3.98 trillion globally by 2028, up from $528.7 billion in 2023.

Open-loop Prepaid Cards Drive Adoption

By 2028, the value of digital prepaid card transactions will represent just under 60% of total prepaid cards spend, up from 15% in 2023; demonstrating the rapid growth of digitisation. It also reflects the greater use of digitally issued open-loop prepaid cards as loyalty rewards; replacing more traditional gift cards. Open-loop systems, where payments can be made anywhere cards are accepted, will lead to an increasingly blurred line between prepaid cards and gift cards. This will make the much wider loyalty market increasingly addressable for prepaid card vendors, compared with the closed-loop system, where payments can only be made at specific vendors.

A digital prepaid card is a virtual form of a prepaid card that exists entirely in digital format and can be accessed through a mobile app or online platform.

Find out more about the new report, Prepaid Cards Market: Trends, Strategies & Market Forecasts 2023-2028, or download a free sample.

New Growth Markets for Digital Prepaid Cards

· The number of prepaid cards issued digitally is expected to surpass 940 million by 2028.
· Prepaid cards are highly appealing to the unbanked; offering the functionality of payment cards without the need of an account with a financial institution.

Financial inclusion remains a key issue for the millions of unbanked and underbanked across the world. However, advances in digitalisation, smartphone availability, and the ease with which vendors can now issue prepaid cards digitally and instantly, mean that financial inclusion is within near reach of a growing number of users.

Research co-author Nick Maynard explained: “Financial inclusion use cases can significantly accelerate the success of prepaid cards, but vendors must keep the costs very low to ensure prepaid cards remain competitive for these use cases versus mobile money apps or central bank digital currencies.”

View the Prepaid Cards Market research:
https://www.juniperresearch.com/researchstore/fintech-payments/prepaid-cards-research-report

Download the free sample:
https://www.juniperresearch.com/whitepapers/digitalisation-the-future-of-prepaid-cards

Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and commentary.

View source version on businesswire.com:
https://www.businesswire.com/news/home/20230530005017/en/

Contact

Sam Smith
Press Relations
T: +44(0)1256830002
E: sam.smith@juniperresearch.com

Source : Juniper Research

--BERNAMA

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