Overview
Mercator started extensive coverage of the prepaid industry in 2004 and has defined its value chain. That value chain and the technologies utilized have evolved, and Payments-as-a-Service (PaaS) providers are the result.
Prepaid processors expanded their platforms in three directions. First, new payment types from the card networks were added, including virtual cards, tokens, and push payments. Second, the processing platforms were exposed so third-party developers could easily access the platforms’ capabilities using Application Programming Interfaces (APIs). Third, new networks were added to the platforms, including ACH and same day ACH, to expand capabilities beyond the card networks’ Mastercard Send and Visa Direct real-time push payment solutions.
These enhancements have been transformative. As use-case models became packaged and more readily available, they gave birth to the reality of Payments-as-a-Service (PaaS). Processors, freed from the physical card, exposed to all developers on the internet, and enabled to send value at any time, to any account, located anywhere in the world, created a range of new opportunities, new business models, and an entirely new value proposition.
Learn More About This Report & Javelin
Related content
Proceed With Caution: Instability in Government Programs Shakes Up the Prepaid Sector
The rapid action of the so-named Department of Government Efficiency, combined with budgetary priorities that could sap aid programs, highlights a potentially tumultuous time for p...
2025 State of the Industry: Commercial Prepaid Cards
The commercial prepaid market should present divergent opportunities for growth, given the positive growth in business-to-business relationships and stagnant or shrinking governmen...
2025 Prepaid Card Data Book
Open-loop and closed-loop prepaid segments have stabilized, with a slight uptick in overall growth aided by positive consumer behaviors and the introduction and expansion of gaming...
Make informed decisions in a digital financial world