Global Prepaid Credit Card Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Prepaid Credit Card Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Prepaid credit cards usually spend shopping within the scope of guaranteed funds. Prepaid credit cards open an account when someone deposits money into the account, which is somewhat similar to opening a checking or savings account. Once the money is deposited, the account holder can use it like a normal credit card. One of the greatest benefits of prepaid credit cards is that they will not make the holder indebted for consumption, because the purchasing power of the credit card is limited to the amount of guaranteed funds. And because of the need to guarantee funds, no bills, interest charges and late fees are required.

Market Overview:

The latest research study on the global Prepaid Credit Card market finds that the global Prepaid Credit Card market reached a value of USD 1054424.33 million in 2022. It’s expected that the market will achieve USD 1910142.97 million by 2028, exhibiting a CAGR of 10.41% during the forecast period.

Influence of COVID-19 Outbreak on Prepaid Credit Card Industry Development

The new coronavirus not only threatens the lives of people all over the world, causing social anxiety and pessimism, but also affects the global industrial chain. COVID-19 has a huge impact on the operation of the industry, and the impact on small and medium-sized enterprises is even more obvious. The suspension of production not only exacerbated the shortage of funds for SMEs, but also reduced the solvency of enterprises and may affect production and sales. Various factors have restricted normal business activities, and the number of unemployed has increased. People will actively reduce their consumption levels out of concerns about the future economic conditions, thereby reducing the demand for prepaid credit cards. On the other hand, transportation is interrupted, production plans are blocked, employees are unwilling to work, and other problems also put a lot of pressure on the supplier, making it difficult to respond to downstream demand in a timely manner. The impact of COVID-19 on the industry depends on the ultimate development of the epidemic, but more than half a year has passed, causing some economic losses. If a second epidemic breaks out in the cold winter, the loss may be difficult to make up for in the next few months. Therefore, the industry's growth rate in 2020 is expected to be 6.62%, lower than the previous year 2019 with 12.04% growth rate.

However, in the long run, customer demand for this product continues to grow. Customers still need prepaid credit cards to help them develop good financial management habits. In addition, prepaid credit cards are still one of the best choices for travel, business trips and short-term study. And, the impact of the epidemic will gradually dissipate with strict control measures and vaccine research and development. As the economy returns to normal, people's enthusiasm for consumption may increase. Therefore, the short-term shock from COVID-19 will hardly affect the long-term upward trend. The Prepaid Credit Card industry is expected to achieve an annual growth rate of 11.69% in 2020-2026F.

Drivers

In the modern economy, debt has become commonplace. Enterprises use loans to increase liquidity and expand production scale, while personal loans include mortgages, student loans, credit cards, mortgages and other forms of debt. According to the Household Debt and Credit Quarterly Report of the Federal Reserve Restaurant & Coffee Shop Payments of New York, US household debt reached a record high in the fourth quarter of 2019, reaching $14.15 trillion. The nominal value of nominal debt (not adjusted for inflation) is approximately $1.5 trillion more than the total household debt that peaked before 2008. In addition, according to Statista data, in Europe, as of the first half of 2019, the overall average debt per adult was around US$24,000. China, as a high-profile emerging economy, its residents' debt is growing rapidly due to housing prices. In the past five years from 2015 to 2019, Chinese household borrowing increased by US$4.6 trillion. Various factors have caused the debt ratio of residents in various countries to remain high; moreover, with the long-term economic stagnation, loans and excess consumption are actually destroying people's living standards. Therefore, many people are trying to close credit card accounts that would lead to excessive consumption in order to maintain rational consumption. However, some online consumption or hotel accommodations only accept credit cards, resulting in people's needs not being effectively met. The prepaid credit card usually does not give a high limit, will not make the holder indebted for consumption, and can be used like a credit card. This feature and the pressure of repayment are the main driving forces supporting this market.

Limitations

The prevalence of prepaid credit cards has attracted the attention of the government. The United Kingdom, the United States, Canada and other countries have strengthened supervision of the industry. For example, the British EMR stipulates that even if the issuer goes bankrupt, the rights and interests of the card purchaser must be protected. The US CFPB has made more detailed regulations. More stringent supervision means that companies need to take on more responsibilities, spend a lot of manpower and material resources on compliance, increase compliance costs, and thus, limiting the development of the industry.

Region Overview:

North America had the highest growth rate of all regions.

Company Overview

The Bancorp Bank is one of the major players operating in the Prepaid Credit Card market, holding a share of 5.27% in 2019.

The Bancorp Bank provides commercial banking services. The Bancorp Bank provide savings accounts, wealth management, loans, mortgages and merchant services. The Bancorp Bank operates globally.

MetaBank works in several parts of the banking and payment industry: MetaBank, its traditional retail banking business; Meta Payment Systems, its electronic payment division; AFS/IBEX, its insurance premium financing division; and Refund Advantage, EPS Financial and Speciality Consumer Services' tax-related financial solutions department.

Segmentation Overview:

By type, Open Loop segment accounted for the largest share of market in 2021.

Application Overview:

By application, the Restaurant & Coffee Shop Payments segment occupied the biggest share from 2017 to 2022.

Key Companies in the global Prepaid Credit Card market covered in Chapter 3:

H&R Block
MetaBank
Bank of America
The Bancorp Bank
Poste Italiane
Green Dot Corporation
American Express Company
Comerica Bank
BBVA Compass
Banca Nazionale del Lavoro
PayPal Holdings, Inc
Banca Sella
N26
JPMorgan Chase & Co.
NetSpend

In Chapter 4 and Chapter 14.2, on the basis of types, the Prepaid Credit Card market from 2018 to 2029 is primarily split into:

Open Loop
Closed Loop

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Prepaid Credit Card market from 2018 to 2029 covers:

Hotel Payments
Restaurant & Coffee Shop Payments
Grocery Store Payments
Online Shopping
Others

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)