U.S. Prepaid Card Market Faces More Uncertainty Through 2018
Closed-loop prepaid loads in the U.S. will be 2% through 2018, reaching a total of $312 billion. The results of the U.S. elections and the changes coming in the federal government could benefit some closed-loop prepaid segments and harm others, but a level of uncertainty remains for the industry.
According to Mercator Advisory Group’s 13th Annual U.S. Prepaid Cards Market Forecasts, 2016–2019, says the fundamental business proposition of prepaid cards as a valuable payments tool continues to be strong. Nonetheless, prepaid providers should be evaluating their businesses and looking for ways to diversify.
The Store Credits (Returns) will decline through 2019 as consumer shopping and payments behavior changes the way returns are handled.
Mercator Advisory Group forecasts slow growth across all segments, but several segments could see faster growth depending on macroeconomic factors.
Energy prices will affect the Petroleum and Utilities segments and could drive loads in those segments up or down.
Tolls and Transit loads will be influenced by infrastructure spend and gas prices as well.
Nutritional Assistance, Incentives, Benefits, and Campus card loads will be affected by government policy, including tax law changes, funding for programs, and general regulatory requirements.
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