A new report from Aite Group, LLC examines five leading trends in the private label prepaid card market, and quantifies the current private label prepaid card market itself. The report also profiles and compares the strategies and solutions of six leading private label prepaid card processors: Chockstone, First Data, Chase Paymentech, SVS, Metavante and World Gift Card.
The private label prepaid card market has grown tremendously over the past several years. Because of the recession and heavy competition from branded prepaid cards, however, Aite Group believes that total volume loaded on private label prepaid cards will remain flat at around US$39 billion for the three years to come. While the card processor space has been dominated by two players – First Data and SVS – in recent years, the game is changing. New strategies that address the latest trends in the private label prepaid card space mean that smaller players offering innovative solutions to the evolving marketplace will be able to grow their business tremendously.
“Merchants looking for a private label prepaid card solution must consider card processors’ offerings carefully to ensure they meet today’s market demands,” says Adil Moussa, analyst with Aite Group and author of this report. “Besides basic functionality, access to ad-hoc reporting and loyalty marketing allows for deeper analysis of customers and helps drive behavioral change. Private label prepaid card processors would be well-advised to do two things: provide offerings that support merchants’ sales strategies and deliver solutions that drive loyalty marketing.”
D.C.