Prepaid cards continue to hold a strong position in the payments landscape, offering convenience, flexibility, and control for a wide range of consumers. Over the past year, usage has remained steady across various categories—from everyday spending to gifting and financial management.
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Data for today’s episode is provided by Javelin Strategy & Research’s Report: 2025 Prepaid Card Data Book
Prepaid Cards Purchased, Reloaded, or Received in the Past 12 Months, by Percentage of Consumers
- 74% – Retailer-specific gift card
- 45% – General-purpose non-reloadable card
- 27% – General-purpose reloadable card
- 16% – Gas prepaid card
- 10% – Phone prepaid card
Source: Javelin Strategy & Research
About Report
The prepaid card market—both open-loop and closed-loop—has found its footing, showing modest growth driven by strong consumer usage patterns and the emergence of new sectors like gaming and gambling. According to Javelin Strategy & Research, nearly half of all prepaid categories are projected to grow at or above the industry’s average pace of 8% in 2025. However, not all segments are keeping up. Government and telecom-related products are expected to underperform, with growth lagging behind the 2.7% inflation benchmark.
Political dynamics, including changes in federal leadership, are likely to restrict expansion in public sector programs. Meanwhile, categories such as gaming, healthcare spending cards, retail gift cards, and incentive-based products are set to perform strongly. Programs tied to fixed cost-of-living adjustments or reliant on legislative support—like Social Security or TANF—may face tougher conditions moving forward.
