GS Logo
The Green Sheet, Inc

Please Log in

Banner Ad
View Archives

View PDF of this issue

Care to Share?


Table of Contents

Lead Story

Learning the ISO lingo

News

GS Online: 4.2 million and climbing ...

MWAA 2007: Security, depth and rock-and-roll

VeriFone corners NYC taxi business

Who's minding the small-business store, Visa wants to know

TMS, AMS settle their grudge

Congress grills warring parties on interchange

Features

AgenTalkSM:
David E. Hanlin Jr.

Dark cloud shrouds ATM ISOs in Sunshine State

Missy Baxter
ATMmarketplace.com

ISOMetrics:
Prepaid cards: An obsolescent evolution?

Views

On queue: Self-service card payments come of age

Paul Rasori
VeriFone

Breached security: The buck stops where?

Grant Drummond
Ingenico

Education

Street SmartsSM:
Demand defrays doubts about costly cash advance

Dee Karawadra
Impact PaySystem

Perfect storm of acquirer liability averted

Theodore F. Monroe and Bradley Cebeci
Attorneys at Law

Size up your sales pitch

Marcelo Paladini
Cynergy Data

P-cards: The payoff is palpable

Aaron Bills
3Delta Systems Inc.

Small shops under the PCI gun

Michael Petitti
AmbironTrustWave

Company Profile

Money Movers of America Inc.

New Products

It's hues to you

POS Supply Solutions Inc.
Colored paper rolls

Outsource the chargeback confusion

ChargebackAudit LLC
Chargeback Dispute Management System

Inspiration

You are the sunshine of your life

Departments

Forum

Industry Update

Resource Guide

Datebook

Skyscraper Ad

The Green Sheet Online Edition

August 13, 2007  •  Issue 07:08:01

previous next

ISOMetrics

Prepaid cards: An obsolescent evolution?

The prepaid card industry's increasing success will ultimately contribute to its demise, a new report from Aite Group LLC, a research and advisory firm, predicts.

Gwenn B‚zard, the report's author, expects the industry will have "ceased to exist as a recognizable entity" by the middle of the next decade.

"Over time, the subtle distinctions between the various card products, such as debit versus prepaid versus credit, and branded versus private label, will erode as products grow in diversity and complexity and mesh together," B‚zard stated.

In the meantime, prepaid cards, both branded and private label, will continue their evolution.

Branded prepaid cards are bank-issued cards branded with a card network logo, such as Visa U.S.A. or American Express Co.

Private label cards are issued by a retailer or other corporate entity and do not bear a card network logo.

Aite estimates the value of all prepaid card transactions in the United States will increase from $113 billion in 2007 to $178 billion in 2010.

The number of prepaid card transactions will grow from 4.3 billion in 2007 to 7 billion in 2010.

Three major trends currently shaping the industry include the:

  • Introduction of reload services
  • Drive to offer private label prepaid card products to small merchants
  • Integration of branded and private label prepaid cards into various industries' business processes, including health benefits and cash management products.

 Prepaid cards: An obsolescent evolution?
To see a hi-res pdf of the ISOMetrics page click here: ISOMetrics page
For more information, visit www.aitegroup.com

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

previous next

Spotlight Innovators:

North American Bancard | Harbortouch | USAePay | IRISCRM.COM | Humboldt Merchant Services