2027 Prepaid Payments Trends

Since its inception, prepaid has generally been judged by what has gone unspent. Times are changing. In 2027, the programs that accelerate will be judged by what is spent, by whom, and how often. Javelin’s look into the trends of the year ahead centers on three shifts that will move the prepaid sector from a back-office product line to a growth strategy for merchants, employers, and the providers that support these programs. 

Lift, satisfaction, and other metrics will supplant breakage as the measure that matters. Breakage is easy to book, simple to explain across the organization, and traditionally accepted, but it rewards the wrong behaviors. Incremental spend, customer acquisition, repeat visits, and satisfaction led by the gift card tell a much richer story. Merchants and their partners that build this data will build a stronger platform and a better case for investment. 

Second, the lower end of the merchant spectrum—small and locally owned businesses—will finally gain access to gift card programs that match the capabilities of their large, national competitors. Digital tools, AI-assisted setups, and community-based programs will lower the cost of entry and give local merchants the chance to be competitive for guest dollar spend and in the business-to-business space. 

Finally, payday will come in many forms in 2027, and the payroll card is ready to shine. Payroll cards are moving from a last resort to a deliberate choice. This is especially true for temporary, gig, and part-time workers, who can use the cards as primary pay options. Payroll cards are also ready to stand in support of traditional direct deposit as an additional pay option for more stable workers seeking secondary pay types.