The market for prepaid cards, one of the most simple and useful methods of payment for online gambling, is expected to see massive growth over the next few years.
A study performed by Research Cosmos and published by BIS Report Consulting found the global prepaid cards market was valued at $892 billion in 2017 and predicted the market, at a compound annual growth rate (CAGR) of 21.7 percent, will be valued at $3.643 billion by 2022.
Prepaid cards are a relatively new form of payment, where funds are not linked to any bank account and are instead connected directly and solely on the card independently.
It has become one of the fastest growing industries in the world, which is likely due to many of the advantages these cards have.
For starters, prepaid cards are available to everyone on the planet and are a substitute for having a bank account, giving people a different but unique way to manage their money.
Prepaid card users do not have to factor in credit rating, income, or whether the person has a personal bank account.
The primary users of prepaid cards are individuals who live in locations that have limited or not banking services available to them. Another popular use of prepaid cards is for funding online gambling sites such as prepaid casinos, prepaid sportsbooks, or prepaid poker sites.
To conduct the research, BIS Report Consulting used many factors to determine the market outlook for the prepaid card, which include “the manufacturers’ data, including: shipment, price, revenue, gross profit, interview record, business distribution etc.” along with covering all of the world’s regions and countries, showing “a regional development status, including market size, volume and value, as well as price data.”
In addition, the study included the types of cards underneath the definition of “prepaid card” in addition to listing the most prominent leaders in the industry, which can be seen below.
- Open-loop Prepaid Card
- Closed-loop Prepaid Card
- Reloadable Prepaid CardPayroll Card
- Government Benefit Card
Some of the Prominent Players in this Prepaid Card Market:
- American Express
- Bank of America
- Apple Inc
- Wells Fargo
- West Union
As for where the cards are used the most, online and physical retail stores and e-commerce purchasing take the top spots.
The exponential growth expected from those two sectors of business over the next few years is a major factor in the study and why it predicted the prepaid card market will be valued at $3.643 trillion by 2022.