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Prepaid Card Market Size - By Type (Open Loop, Closed Loop), By Usage (General Purpose, Payroll Card, Travel Prepaid Cards, Gift Card), By Funding (Pre-funded, Government Benefit Cards) & Global Forecast 2023 – 2032

  • Report ID: GMI6280
  • Published Date: Jul 2023
  • Report Format: PDF

Prepaid Card Market Size

Prepaid Card Market size was valued at USD 1.8 trillion in 2022 and is anticipated to register a CAGR of over 15.5% between 2023 and 2032. Consumer interest in cashless transactions has played a pivotal role in driving the market growth. As consumers increasingly seek convenience, security, and efficiency in their payment methods, cashless transactions have emerged as an attractive alternative to traditional cash-based payments.


Prepaid Card Market

The rise of digital payment platforms, contactless cards, and mobile wallets has transformed the way people make purchases. Prepaid cards, with their versatility and ability to facilitate cashless transactions, align perfectly with this trend. Consumers appreciate the ease of loading funds onto prepaid cards and using them for various transactions, whether online, in-store, or abroad.


Moreover, Prepaid cards' contactless features have been particularly appealing to consumers during this time. As cashless transactions continue to gain traction, consumers are embracing prepaid cards as a practical and accessible means of participating in the digital economy. The convenience, security, and growing acceptance of prepaid cards have significantly contributed to the market's expansion, making them a preferred choice for individuals seeking efficient cashless payment solutions.

Reload and redemption barriers have hampered prepaid card market demand by discouraging potential users from adopting these cards. Limited reload options can deter consumers from continually using prepaid cards, as they may find it inconvenient or restrictive to add funds. Additionally, difficulties in redeeming unused balances may lead to frustration and a negative perception of prepaid cards. These barriers hinder the seamless and flexible user experience that consumers seek, impacting the market's potential for broader adoption and sustained growth.

COVID-19 Impact

The COVID-19 pandemic had a significant impact on the prepaid card market, growing focus on hygiene and safety, consumers embraced contactless transactions, including prepaid cards, to avoid handling cash. The shift towards online shopping also increased the demand for prepaid cards for secure digital transactions. Additionally, the pandemic's economic impact led to increased use of prepaid cards for government assistance disbursements, unemployment benefits, and payroll solutions.

Prepaid Card Market Trends

As global travel and cross-border e-commerce continue to grow, there is a rising demand for prepaid card solutions that offer competitive foreign exchange rates and reduced transaction fees for international usage. Prepaid card providers are recognizing the importance of catering to the needs of travelers and individuals engaging in cross-border transactions. To meet this demand, prepaid card issuers are working to improve the interoperability of their cards. This means ensuring that prepaid cards are widely accepted across different countries and payment networks. By expanding the network of affiliated merchants and payment partners globally, cardholders can use their prepaid cards seamlessly during their travels and international purchases.

Prepaid Card Market Analysis

Prepaid Cards Market Transactional Value, 2021-2032 (USD Trillion)

The open loop segment accounted for 38% of the prepaid card market share in 2022. Open loop cards offer a versatile and convenient payment solution for consumers, driving their adoption across various demographics. One of the key factors propelling their growth is the increasing shift towards cashless transactions worldwide. Moreover, several open-loop prepaid cards now integrate with mobile wallets, making it easier for users to manage and utilize funds through smartphones. This convergence of mobile technology and prepaid cards has led to increased convenience and accessibility, attracting more consumers towards this payment option.

Prepaid Cards Market Transactional Value Market Share, By Usage, 2022

The general-purpose segment held over 65% of the prepaid card market share in 2022. Prepaid cards are preferred by budget-conscious consumers who want to maintain better control over spending. With general purpose prepaid cards, users can load a specific amount of money onto the card, setting a budget for their expenses. This feature helps users avoid overspending, making these cards an attractive option for those looking to manage their finances more effectively.

U.S. Prepaid Cards Market Transactional Value, 2021 - 2032 (USD Billion)

North America prepaid card market recorded more than 60% of revenue share in 2022. In North America, prepaid cards have gained immense popularity across diverse consumer groups, catering to both the unbanked and underbanked populations seeking financial inclusion, and frequent travelers in search of cashless convenience. Prepaid cards are widely used for everyday transactions, online shopping, bill payments, and budget management, serving as versatile general-purpose cards. Gift cards have also become a favored gifting option in the U.S., with many retailers offering closed-loop gift cards as part of loyalty and promotional programs.

Prepaid Card Market Share

Major companies operating in the prepaid card market include :

  • American Express Company
  • BREADFX Euro Prepaid MasterCard
  • ecoCard
  •  FairFX Anywhere Card
  • Green Dot Corporation
  • JPMorgan Chase & Co.
  • Kaiku Finance
  • Mastercard
  • Payoneer Prepaid MasterCard
  • PayPal Holdings Inc.
  • Thomas Cook Cash Passport,
  • Travel Money Card Plus
  • UniRush
  • LLC and Visa.

Prepaid Card Industry News

  • In February 2023, Mastercard and Obopay announced to launch financial inclusion card for smallholder farmers and rural communities. The prepaid card, which is supported by Mastercard's Community Pass digital infrastructure, will enable farmers to receive the sale proceeds for their crop digitally, use earnings to make purchases even in remote areas with spotty or no connectivity, and establish a transaction history based on their income and spending to access specialized credit options. The prepaid card will function in conjunction with the current Mastercard Farm Pass infrastructure to enable farmers to receive payments into their prepaid card accounts and utilize those funds to make purchases at neighborhood stores. A larger Community Pass infrastructure is comprised of Farm Pass by Mastercard.

The prepaid card market research report includes in-depth coverage of the industry with estimates & forecast in terms of transactional value (USD Billion) and transactional volume (Million) from 2018 to 2032, for the following segments:

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Market, By Product

  • Open looped
  • Closed-looped

Market, By Usage

  • General Purpose
  • Payroll Cards
  • Travel Prepaid Cards
  • Gift Cards

Market, By Funding

  • Pre-funded
  • Government Benefit Cards

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Netherlands
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Singapore
    • Australia
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • MEA
    • UAE
    • Saudi Arabia
    • South Africa


Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of prepaid card reached USD 1.8 trillion in 2022 and is estimated to observe over 15.5% CAGR from 2023 to 2032, driven by the rising consumer interest in cashless transactions.

The open loop type segment recorded over 38% of the market share in 2022, owing to the growing need for convenience and accessibility amongst consumers.

North America accounted for over 60% of market share in 2022, due to the rise in the number of frequent travelers in search of cashless convenience.

American Express Company, BREADFX Euro Prepaid MasterCard, ecoCard, FairFX Anywhere Card, Green Dot Corporation, JPMorgan Chase & Co., Mastercard, Payoneer Prepaid MasterCard, PayPal Holdings Inc., and Thomas Cook Cash Passport are some major prepaid card providers.

Prepaid Card Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 14
  • Tables & Figures: 276
  • Countries covered: 21
  • Pages: 280
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