Mercator Advisory Group, an independent research and advisory services firm for the payments and banking industries, released their third benchmark report of the year forecasting the prepaid card services outlook through 2014 as mentioned in a recent PRWeb release. The two previous reports focused exclusively on the Open-Loop and Closed-Loop arenas. This is their Eighth Annual Prepaid Market Forecast and Mercator claims that they have learned not to generalize about the prepaid market and now review activity and shifts for open and closed-loop markets across 18 different segments.
The prepaid debit card market has realized some dramatic growth spurts in the past few years given the country’s economic struggles that have limited many consumer’s ability to access credit or even reinforced trust issues with the traditional banking system. According to Mercator, the report contains detailed analysis highlighting segments that are reaching saturation as well as those with anticipated high growth in the 20 to 70 percent range.
Tim Sloane, Vice President of Mercator Client Services and author of the Market Forecast said:
“Having now performed eight prepaid forecasts, Mercator Advisory Group has learned not to generalize about the prepaid market. GPR is not a product, it is a technology. Products designed to sell into government disbursements; reloadable incentives, bank turndown solutions, family budgeting tools, payroll, and serving the unbanked and underserved, are all unique. Each product has a very different set of product requirements, go-to-market cost structures, sales cycles, and growth rates.”
Following are some highlights included from the release:
- Updated market figures based on new data collected from merchants in 2010.
- Which closed-loop segments have grown faster than previously predicted.
- Adjustments to the open-loop segments most likely to be impacted from new regulations and guidance from the Federal Reserve Board, FinCEN, and OCC.
- The key prepaid open-loop segments that will continue to grow faster than other payment types despite adjustment for slower growth rates.
- New projections for the date when the open-loop market will exceed closed-loop.
- Updated projections of the 2012 total prepaid market size and new forecasts of the loads in the open-loop market.