Proceed With Caution: Instability in Government Programs Shakes Up the Prepaid Sector
- Date:March 13, 2025
- Author(s):
- Jordan Hirschfield
- Report Details: 6 pages, 2 graphics
- Research Topic(s):
- Prepaid
- PAID CONTENT
Overview
Government prepaid payments, for so long a steady and consistent business for the entities contracted to manage them, have lapsed into uncertainty and turmoil. The rapid action of the so-named Department of Government Efficiency, combined with budgetary priorities that could sap aid programs propelled by prepaid cards, highlights a potentially tumultuous time for the programs that interact with the federal government.
As the current administration backs away from enforcement, additional liabilities could emerge if future administrations choose to reinstate more regulatory control. The entirety of the prepaid infrastructure, regardless of their connections to government programs, would be wise to carefully evaluate its exposure to the federal government and establish strict internal controls to protect against adverse outcomes. This Javelin Strategy & Research impact note looks at the unfolding situation, highlights areas of concern, and provides actionable advice for those businesses riding out the current uncertainty.
Learn More About This Report & Javelin
Related content
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...
21st Annual U.S. Open-Loop Prepaid Card Market Forecast, 2024-2028
Open-loop prepaid programs continue to show consistent and strong growth opportunities across most market verticals. This Javelin Strategy & Research report, the 21st annual assess...
Make informed decisions in a digital financial world