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Data for today’s episode is provided by Mercator Advisory Group’s Report: 2022 Outlook: Prepaid
Fraud Remains a Perennial Challenge in the Prepaid Card Market:
- Fraud has been, and continues to be, a challenge for the prepaid card market.
- In particular, gift card fraud is a widespread threat to consumers and merchants alike.
- Gift card fraud is growing in the U.S., with reported financial losses rising from $103 million in 2019 to $124 million in 2020.
- The number of reported cases increased by 160% over the same period, from 38,400 to 99,900.
- According to an April 2021 survey of 1,000 U.S. adults, 1 in 4 have been asked to purchase a gift card to pay a fee to claim.
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.