The Evolving Open-loop Pre-paid Opportunity

Government benefit cards gaining traction globally

Throughout the Americas, government benefit cards have rapidly replaced paper disbursement. The cards are increasing transparency and are reducing programme operating costs. The US is likely to continue to be the largest market.

General Purpose Reloadable cards are the largest open-loop card type globally

While other open-loop card functions have grown considerably, GPR cards remain the single largest category by cards in circulation.

Open-loop payment value to double by 2018

The adoption of the open-loop card function globally is projected to continue over the forecast period, to reach almost US$500 billion by 2018.

US to reinforce position as largest open-loop market

The US is projected to increase its share of global open-loop pre-paid payment value to 63% by 2018 from 59% in 2013.

Online retailing driving open-loop use in emerging markets

Consumers without access to financial services in emerging markets who need to perform an on-line payment transaction are limited to using an open-loop pre-paid card in many instances.

Non-financial card issuers increasing competition for unbanked and financially under-served

Competition to capture the 51% of the world’s population aged over 15 years who are either financially underserved or unbanked is increasing. In many cases, an open-loop card and a mobile platform can perform a number of financial services that otherwise would take place in a retail branch.

Visa the largest open-loop card network

Visa open-loop pre-paid cards accounted for 32% of the function’s total payment value in 2012 followed by MasterCard, with 24%. However, the two largest networks have been losing share in recent years.

What this report includes

• Top-level strategic analysis of how major consumer trends will influence global markets
• Consumer insight
• Impact across all relevant consumer markets
• Unique graphics and case studies
• Key market snapshots
• Accompanying presentation to synthesise main findings

Why buy this report

• Identify factors driving change now and in the future
• Understand motivation
• Forward-looking outlook
• Briefings and presentation should provoke lively discussion at senior level
• Take a step back from micro trends
• Get up to date estimates and comment