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Data for today’s episode is provided by Mercator Advisory Group’s Report: 18th Annual U.S. Open-Loop Prepaid Cards Market Forecasts, 2020–2025
Open-Loop Prepaid Payroll Card Market Growth:
- The Payroll segment of the Payroll and Benefits category measures wages paid via prepaid card to employees and independent contractors.
- Payroll prepaid card loads were adjusted this year to account for gig workers and earned wage access.
- From 2010 to 2019, the share of gig workers in companies increased from 14.2% to 16.4%.
- The prepaid payroll market is making advances against checks. This segment increased by 214% from 2019 to 2020.
- The prepaid payroll market is projected to grow an additional 11.8% from 2021 to 2025.
The report titled 18th Annual U.S. Open-Loop Prepaid Cards Market Forecasts, 2020–2025 provides an analysis of the growth and development of the open-loop prepaid cards industry through 2025. The report examines loads, growth potential, and market dynamics in the United States across all open-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 forecast to grow. The economy, regulation, consumer behavior, and the COVID-19 pandemic will all influence which segments grow and which decline.
“The pandemic has affected open-loop card loads differently by segment. Most of the growth in open-loop prepaid loads came from government benefits: state unemployment and stimulus programs. Segments that displayed negative growth decreased as a consequence of COVID-19 induced impacts: decreased travel, physical location closures or delays in service amidst social distancing, and decreased consumer income. Consumers also purchased more digital open-loop gift cards. As the pandemic subsides and government benefits cease in 2021, we expect a drop in open-loop loads for 2021, followed by a slight positive trend into 2025.” commented David Nelyubin, Senior Analyst of Mercator Advisory Group’s Prepaid Advisory Service, the author of the report.