Consumers find new uses for prepaid

by. Konrad Christensen

A study recently released by Mercator Advisory Group offers documentation and analysis of the growth and development of the prepaid cards industry. The Tenth Annual U.S. Prepaid Cards Market Forecasts, 2013–2016 provides an analysis of prepaid card load dollar volume, growth and market dynamics in the U.S payments system.

While the prepaid industry continues to grow, Mercator found the industry’s growth has slowed some due to economic instability and an uptick in legislative and regulatory activity related to the prepaid market. Even so, Mercator indicates there are prepaid segments that should see growth over the next four years.

Specifically, the latest report in Mercator’s CustomerMonitor Survey Series suggests that although prepaid growth may have slowed temporarily, consumers are using prepaid cards in more ways and in more places than ever before.

“The one observation that is safe to make is that companies and consumers continue to find new uses for prepaid technology, and that will drive growth in some segments and a movement of dollars between segments,” said the director of Mercator’s prepaid advisory service.

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