Prepaid card transactions to exceed USD 4.1 trillion by 2026 globally

Monday 10 January 2022 10:46 CET | News

UK-based Juniper Research has released a new study which shows that transactions made over prepaid cards will exceed USD 4.1 trillion globally in 2026, from 2.3 trillion in 2021.

By 2026, prepaid card transaction value will be just over 50% higher than those forecast for contactless payment transactions, according to the research. The growth in prepaid cards will be driven by the ongoing replacement of cash, as economies move increasingly towards digital payments, says Juniper.

The research identified prepaid cards as being critical to ensuring that the unbanked are included in the rush for digital payments. The study recommends that vendors focus on building robust distribution platforms that can cope with issuing cards at scale and at low cost, or they will lose out to better equipped vendors.

The new research, Prepaid Cards: Trends, Vendor Strategies & Market Forecasts 2022-2026, found that the growth of the prepaid market will present a significant revenue opportunity for prepaid card platforms, with fee revenue reaching over USD 32 billion globally in 2026, from USD 22 billion in 2021. The report recommends that focusing on critical capabilities, such as restricted authorisation, which enables issuers to specify where funds can be spent, will pay dividends in the longer term.

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Keywords: prepaid card, growth markets, research, Juniper Research, digital payments
Categories: Payments & Commerce
Companies: Juniper Research
Countries: World
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Payments & Commerce

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