23rd Annual U.S. Closed-Loop Prepaid Card Market Forecast, 2027-2030

The U.S. closed-loop prepaid market presents an uneven growth outlook through 2030, with retail gift cards, commercial incentives, and digital gaming driving expansion as several established segments encounter structural constraints. In-store and digital gift card loads are forecast to grow at a 9% compound annual rate, exceeding $500 billion by 2030. Employee and consumer incentives are projected to grow at 7% and 9%, while digital gaming and gambling lead with an estimated 18% growth rate. Physical cards remain an important complement to digital delivery, with 1.28 billion estimated purchases in 2026. Government programs face funding uncertainty, and campus cards are contending with enrollment pressures. Transit faces competition from postpaid payment options, while petroleum and telecom remain slower-growth markets. 

Segment forecasts, consumer preferences, and economic and regulatory considerations in this report provide a foundation for setting product and investment priorities. Retailers, financial institutions, program managers, and technology providers can use these insights to balance growth initiatives with operational efficiency, strengthen fraud protections, and connect gift cards with loyalty, reloads, and repeat purchases. Success depends on matching strategy to each segment’s prospects rather than assuming uniform market expansion.

Key questions discussed in this report: 

• What are the projected growth rates for U.S. closed-loop prepaid segments through 2030, and which are expected to outpace inflation?
• How should retailers, program managers, and service providers prioritize growth opportunities, customer engagement, and operational efficiency across closed-loop prepaid segments?
• What economic, regulatory, and competitive forces are shaping growth opportunities and headwinds across closed-loop prepaid markets? 

Companies Mentioned: 

AT&T, CPI Card Group, Kalshi, PLI, Polymarket, RaiseRight, Scripzone, T-Mobile, Verizon