Closed-loop prepaid cards continued to play an important role in consumer spending during 2020, even as the COVID-19 pandemic reshaped purchasing habits and accelerated the shift toward digital commerce. New research from Mercator Advisory Group highlights how traditional in-store gift cards remained the largest segment of the market, while digital content, virtual gift cards, and prepaid mobile services gained momentum as consumers increasingly embraced online and contactless payment experiences. The evolving prepaid landscape reflects broader changes in consumer behavior that are expected to continue influencing the market through 2025.
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Data for today’s episode is provided by Mercator Advisory Group’s Report: 18th Annual U.S. Closed-Loop Prepaid Cards Market Forecasts, 2020–2025
2020’s Top Closed-Loop Load Use Cases by U.S. Market Share:
- In-store gift cards had a 35.7% market share for the closed-loop load market in 2020.
- Digital content had a 16.29% market share for the closed-loop load market in 2020.
- Prepaid mobile had a 13.10% market share for the closed-loop load market in 2020.
- Nutritional Assistance/WIC had a 12.00% market share for the closed-loop load market in 2020.
- Transit had a 4.82% market share for the closed-loop load market in 2020.
- Campus had a 4.71% market share for the closed-loop load market in 2020.
About Report
The report titled 18th Annual U.S. Closed-Loop Prepaid Cards Market Forecasts, 2020–2025 provides an analysis of the growth and development of the prepaid cards industry through 2025. 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. The economy, regulation, consumer behavior, and the COVID-19 pandemic will all influence which segments grow and which decline.
“The pandemic has affected closed-loop card loads differently by segment. Digital and virtual gift cards are forecasted to continue growth amid a booming e-commerce market. As the pandemic subsides and in-store foot traffic returns, in-store gift card loads will slowly come back, however, the consumer trend towards digital channels will remain, resulting in digital and virtual cards winning market share over time,” commented David Nelyubin, Senior Analyst of Mercator Advisory Group’s Prepaid Advisory Service, the author of the report.
