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Data for today’s episode is provided by Mercator Advisory Group’s report – 16th Annual U.S. Closed-Loop Prepaid Cards Market Forecasts, 2018–2022
- For closed-loop prepaid cards in digital content, loads fell by 6% in 2016, then another 7% in 2017
- In dollars, that was a high of $25.8 billion in 2014 down to a low of $21 billion in 2017
- But loads increased 3% in 2018 and have a projected CAGR of 3% through 2022
- The rise and fall of this segment corresponds to the switch to subscription billing in gaming, music, and media
- Individual downloads were replaced by subscription packages. Streaming music alone makes up 47% of all digital revenue
- However, Mercator predicts that streaming subscriptions are close to saturation with little room for growth
- Watch for the reemergence of prepaid options offering month-to-month contracts!
About the report
The report titled 16th Annual U.S. Closed-Loop Prepaid Cards Market Forecasts, 2018–2022 provides an analysis of the growth and development of the prepaid cards industry through 2022. The report examines loads, growth potential, and market dynamics in the United States across all closed-loop prepaid card segments.
Mercator Advisory Group’s forecast report identifies key segments that will continue to decline over the next few years as well as those that should see growth. However, the economy, politics, and consumer behavior will all influence which segments grow and which decline.
This report reviews and forecasts load dollar volume for closed-loop segments. This forecast highlights the segments approaching market saturation as well as those that will continue to experience annual growth.
“Prepaid providers should be evaluating their businesses and looking for ways to diversify,” commented C. Sue Brown, Director of Mercator Advisory Group’s Prepaid Advisory Service, the author of the report. “Opportunities in the prepaid market shift with economic, political, and regulatory changes. New technologies such as the internet of things, connected car, and use of prepaid for transit and tolls may provide growth markets in the years to come.”