A new Impact Report from Aite Group forecasts the evolution of the prepaid card industry in the United States.
Among key findings, the report reveals that despite rapid industry growth, gaining scale in branded prepaid card processing remains a major challenge for processors and issuers.
The report also indicates that the introduction of reload services for branded and private label prepaid cards, the drive to offer private label prepaid card products to small merchants, and the deep integration of branded and private label prepaid cards into various industries' business processes are today's three major trends reshaping the industry.
"The concept of prepaid will grow increasingly irrelevant as it becomes ever-more successful," says Gwenn Bzard, research director at Aite Group and author of the report. "Over time, the subtle distinctions between the various card products will erode as products grow in diversity and complexity and mesh together. By the middle of the next decade, the prepaid card industry will have ceased to exist as a recognisable entity."