Javelin Strategy & Research
(www.javelinstrategy.com), the leading independent provider of
quantitative and qualitative research focused exclusively on financial
services, announced results from a study of how a prepaid card
issuer should assess and choose a processing partner in order to obtain
the greatest success from their prepaid card programs.
According to Javelin, the processor choice is often overlooked and
undervalued by prepaid program managers. But growth in the complexity of
prepaid products, as well as year-over-year transaction volume growth
underscores the criticality of selecting the right processor to keep
pace and optimize investments long-term.
âCompanies that want to enter or expand their prepaid card presence face
important business decisions,â said Bruce Cundiff, Director of Payments
Research and Consulting at Javelin. âUsing a thorough methodology to
choose the right processor is integral to achieving success and a
reliable return on any prepaid card program.â
Javelin delves into four key components of an effective prepaid
processing program, including managing the card, serving the cardholder,
executing the transaction and, getting the most from the platform. A
detailed discussion of each component provides decision-making guidance
to prepaid issuers chartered with managing a program. The study also
takes on several of the common misconceptions about the processor
selection criteria, dispelling myths and setting the record straight
based on perspectives from practitioners and current market trends
How to Start
– Donât start with the solution, start with the business objective.
Find an experienced and consultative processor who can help crystallize
your short-term and long-term needs and configure a tailored solution.
– Look for holistic processing. Companies entering the prepaid
arena need to look at the full range of capabilities a processor offers
and clearly understand how each component, from the platform to
cardholder support, satisfies your operating requirements for the most
– Let customer preferences drive product innovation. As issuers
develop new, niche products, find a processor with the flexibility and
options to help satisfy customer needs expediently and reliably.
– Security and risk management are paramount. In prepaid card
issuance, both with respect to fraud mitigation and also in terms of the
scrutiny that issuers face to comply with money-laundering and homeland
security standards, risk and compliance management canât be overlooked.
– Plan for growth, anticipate evolution. As the market continues to
mature, growth and change will follow. Prepaid issuers must look for a
processor who has the foresight, scale and track record to help minimize
Cundiff continues, âThe evolution of the prepaid card segment will be
driven by consumer needs and technology innovation that enhances
functionality and security. Processors that continuously expand their
offerings and essentially provide flexible solutions, will enable
prepaid card issuers to strengthen and deepen their relationships with
Results from Javelinâs research have been published in a white paper
titled: Choosing a Prepaid Processor in an Evolving Market: A Study on
Issuer and Program Manager Needs and will be presented during a
complimentary webinar session on Wednesday, December 3rd, 2008 at
11:00am Pacific Standard Time. Registration for the webinar can be
accessed at https://visa.webex.com/visa/onstage/g.php?t=a&d=662825557.
Attendees will be provided a link to access the materials, including the
Javelin is the leading independent provider of quantitative and
qualitative research focused exclusively on financial services topics.
Based on the most rigorous statistical methodologies, Javelin conducts
in-depth primary research studies to pinpoint dynamic risks and
opportunities. Javelin helps its clients achieve their initiatives
through three service offerings, including syndicated research
subscriptions, custom research projects and strategic consulting.
Javelinâs client list includes some of the largest banks, credit unions,
card issuers, and technology enterprises in the financial services industry.
Sponsorship for this study is provided by Visa Inc., which operates the
world’s largest retail electronic payments network providing processing
services and payment product platforms. The study combines a perspective
from leading practitioners in the prepaid category, as well as from
Javelinâs years of covering the payments arena. Javelin maintains
complete independence of data analysis and reporting, and this report
has been created solely by Javelin employees.