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Table of Contents

Lead Story

Fintechs: friends or foes?

Patti Murphy

News

Industry Update

News Briefs

Selling Prepaid

ETA sets forth recommendations on prepaid rule

Mixed forecast for open-loop prepaid cards

Views

Why every MLS needs to know how to cross-sell

Barry Davis
Womply

Don't leave alternative payments on the table

Dale S. Laszig
DSL Direct LLC

A solid niche for cash advance products

Steven Feldshuh
Merchants' Choice Payment Solutions East

Education

Street SmartsSM:
Never sell a merchant account again

Aaron Nasseh
Finical Inc.

Portfolio rationalization

Adam T. Hark
Preston Todd Advisors

The real reason so many newbies fail

Jeff Fortney
Clearent LLC

Company Profile

Apogee Payment Systems LLC

New Products

Automated, out-of-the-box cash discount program

XeroPoint. Cash Discount Program
Processing Solutions Inc.

Inspiration

Persuasion in practice

Departments

Letter from the editors

Readers Speak

Tapping into your super-user base

Resource Guide

Datebook

A Bigger Thing

The Green Sheet Online Edition

August 28, 2017  •  Issue 17:08:02

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Mixed forecast for open-loop prepaid cards

Growth in the open-loop prepaid card market was spotty last year, marked by weakening in traditionally fast-growth segments in terms of total loads. As a result, Mercator Advisory Group adjusted its overall expectations in the 14th Annual U.S. Open-Loop Prepaid Cards Market Forecasts, 2017-2020 analysis of market dynamics across all prepaid segments.

According to Mercator's projections, open-loop prepaid loads will reach an estimated $353.6 billion in value by 2020, led by the FSA/HSA (flexible spending account/health savings account) tax deferred programs segment and the benefits segment. In contrast, declining prepaid loads in the money/financial services segment may continue as more individuals open bank accounts.

Declining volumes, new opportunities

As revealed in the report, load dollar volumes for certain segments approaching market saturation are expected to see further declines, whereas less saturated segments will offer opportunities to prepaid card providers who wish to expand into those segments.

"Prepaid providers should be evaluating their businesses and looking for ways to diversify," said Ben Jackson, Director of Mercator Advisory Group's Prepaid Advisory Service, and author of the report. "Opportunities in the prepaid market shift with economic and regulatory changes. New technologies such as the Internet of Things, and new use cases such as corporate disbursements may provide growth markets in the years to come."

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

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Spotlight Innovators:

North American Bancard | USAePay | Humboldt Merchant Services | Impact Paysystems | Electronic Merchant Systems