2023 Prepaid Regulatory Update

The prepaid industry continued to adapt to new regulatory and policy changes enacted in 2023. Policy changes meant to fight inflation, avoid recession, and address other macro conditions continue to be the primary drivers of change in the prepaid market. Secondary drivers include annual cost of living adjustments to regulated programs such as nutrition assistance and health savings accounts (HSAs).

Other specific changes reflect the need to specify products in the broader ecosystem. In retail these include efforts to curb theft and fraud as well as tighter enforcement of cash refund and escheatment policies. Legislative actions had broad coverage from allowing additional states to permit sports gambling to working to reduce use of plastics in the card industry.

Global changes reflected similar themes. Top regulatory concerns continue to be money laundering, theft, and fraud as well as reducing environmental waste. Other global focus areas include regulations on fees and charges and availability cross-border payments.

Key questions discussed in this report:

• What does Javelin expect for regulatory changes in prepaid cards?
• How will economic conditions change policies that direct the prepaid market?
• What impacts will international regulatory changes have on the global prepaid environment?

Companies Mentioned:

Accor Hotels, CPI Card Group, Starbucks, Taco Bell