The U.S. open-loop commercial prepaid market is experiencing significant growth, driven by increasing corporate demand for versatile and efficient financial solutions. This dynamic sector encompasses a wide range of commercial prepaid products, such as payroll cards, expense management cards, and incentive cards, offering businesses flexible payment options and streamlined financial operations. As technological advancements continue to enhance transaction efficiency and security features, the commercial prepaid market is poised to expand further, reflecting broader trends in corporate financial management and digital payments.
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Data for today’s episode is provided by Javelin Strategy & Research’s Report: 2024 State of the Industry: Commercial Prepaid Cards
2023 U.S. Open-Loop Commercial Prepaid Loads by Segment (In Billions of U.S. Dollars)
- $96 – other commercial open-loop
- $94 – government open-loop
- $19 – consumer incentives
- $6 – employee incentives
Source: Javelin Strategy & Research
About Report
The commercial prepaid market should see moderate growth in coming years, with an increased opportunity for non-governmental products such as employee and health incentives in open-loop and closed-loop networks.
With this report, Javelin Strategy & Research continues its annual series on prepaid market trends. Overall, prepaid continues to represent a small but significant share of the overall commercial payments market. The consistency of that share provides stability for vendors offering commercial prepaid programs, and a continuation of high interest rates could create the potential for growth beyond Javelin’s current expectations.
