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Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: 2022 Outlook: Prepaid
U.S. Open-loop Loads Saw Dramatic Growth During the Pandemic:
- In 2020 alone, open-loop prepaid card values increased by 69%.
- 54% of the total change in open-loop prepaid card loads between 2019 and 2020 can be attributed to stimulus funds.
- Growth in the cash access category of the U.S. open-loop prepaid market also played a significant role in the overall increase in open-loop prepaid load values.
- In 2020, cash access grew by 16.2%, reaching a total of $208 billion.
- Mercator Advisory Group forecasts a 3.0% CAGR for open-loop prepaid card loads for the years 2021 to 2025, when total loads will reach $735 billion.
About Viewpoint
In this viewpoint, Mercator examines the prepaid card market, revisiting the forecasts we made last year, identifying current trends, and offering predictions for the future. On the whole, the market is one of the fastest growing segments of the global payments ecosystem, and there are numerous opportunities to be explored. While challenges around fraud and uncertain regulations persist, the market is expected to continue to see robust growth in the coming years.