The Ninth Annual U.S. Prepaid Cards Markets Forecast (2012-2015)

The Ninth Annual U.S. Prepaid Cards Markets Forecast (2012-2015)

New research from Mercator Advisory Group reveals the segments
that will feel the impact of market saturation in the next four years

Boston, MA - October 3, 2012 The report titled U.S. Prepaid Cards Market Forecasts, 2012 -2015 is the last of Mercator Advisory Group's annual trilogy of closely followed U.S. prepaid benchmark reports (Open-Loop, Closed-Loop, and Prepaid Cards Market Forecast), which provides a thorough documentation and analysis of the growth and development of the prepaid cards industry. The reports overview load, growth, and market dynamics across all prepaid solutions.

Research for this year's benchmark indicates that prepaid continues to enjoy strong growth despite economic turmoil and increased legislative and regulatory action. This growth has been sustainable because of the diversity of the prepaid market. However, the findings also indicate that the overall prepaid growth rate has slowed. and Mercator Advisory Group's forecast report identifies key segments that will continue to witness a decline over the next four years as well as those that should see robust growth.

This report reviews and forecasts load dollar volume and card volume for both open- and closed-loop segments. This forecast highlights the segments approaching market saturation as well as those that will continue to experience double-digit annual growth. In addition, this research reflects updated market sizing for the closed-loop market based on new data collected from merchants.

"Having now performed nine prepaid forecasts, Mercator Advisory Group has learned not to generalize about the prepaid market. The one observation that is safe to make is that companies and consumers continue to find new uses for prepaid technology, and that will drive growth in some segments and a movement of dollars between segments," Tim Sloane, vice president of Client Services, director of Mercator Advisory Group's Prepaid Advisory Service, and coauthor of the report, comments. "In addition, the cost of operating a prepaid program continues to rise due to increased regulation while income is squeezed in this fiercely competitive market."

Highlights of the report include:

Forecasts of the compound annual growth rate (CAGR) for open-loop and closed-loop market loads through 2015 along with the two largest subsegments in closed-loop

Shifts in the timing when the open-loop market will surpass closed-loop and the factors contributing to the change

The category with the fastest growing segments in 2011 and projections for future performance in these segments

Segments with anticipated decline and the factors contributing to the predicted shifts

Updated projections for the closed-loop utilities market based on newly received data

One of the 76 figures from the 90-page report:

Members of Mercator Advisory Group's Prepaid Advisory Service have access to this report as well as the upcoming research for the year ahead, presentations, analyst access and other membership benefits.

Please visit us online at www.mercatoradvisorygroup.com.

For more information and media inquiries, please call Mercator Advisory Group's main line: (781) 419-1700, send E-mail to info@mercatoradvisorygroup.com.

For free industry news, opinions, research, company information and more visit us at www.PaymentsJournal.com.

About Mercator Advisory Group
Mercator Advisory Group is the leading, independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world's largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors. Mercator Advisory Group is also the publisher of the online payments and banking news and information portal PaymentsJournal.com.