United States Prepaid Card and Digital Wallet Business and Investment Opportunities Databook Q1 2023 Update: Visa Continues to Dominate Through Strategic Collaborations with Key Banks

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Dublin, March 23, 2023 (GLOBE NEWSWIRE) -- The "United States Prepaid Card and Digital Wallet Business and Investment Opportunities Databook - Market Size and Forecast, Consumer Attitude & Behaviour, Retail Spend - Q1 2023 Update" report has been added to ResearchAndMarkets.com's offering.

Prepaid payment instruments are growing in popularity among consumers in the United States, thereby assisting the prepaid card industry's growth. This coupled with the growing e-commerce market is driving prepaid card transaction value and volume in the country. Furthermore, to provide consumers with their preferred payment options, e-commerce marketplaces and prepaid payment instrument providers are forging strategic alliances. All of these factors are expected to keep driving the industry growth over the next three to four years in the United States.

Visa is seeking to expand its share in the global prepaid card market through strategic collaborations

With the prepaid card industry recording strong growth globally, amid increasing demand for payment solution among businesses as well as consumers, Visa is forging strategic alliances to drive its market share.

  • In November 2022, Visa forged an alliance with the Saudi British Bank and Saudi Payments. Under the collaboration, the firms launched a prepaid procurement card for businesses and corporates.

  • In September 2022, Visa also entered into a partnership with United States-based fintech firm DailyPay and The Bancorp Bank. Notably, the firms have launched a general-purpose reloadable prepaid card, which allows employees to access their salaries before payday at zero cost from their employers.

These alliances are an indication that the firm is seeking to expand its market share in the prepaid card category, where Mastercard is also making big inroads. Like Visa, Mastercard also forged an alliance with AstroPay to launch a prepaid card for consumers in Brazil in November 2022. The publisher expects these trends to further continue as the competition intensifies among Visa and Mastercard in the United States.

Venmo is seeking to expand its share in the person-to-merchant transactions category in the United States

Venmo is one of the leading mobile payment services in the United States. Owned by PayPal, the firm has a bigger share in the peer-to-peer transactions category; however, it is now planning to expand its presence in the person-to-merchant segment. As a result, the firm is forging strategic alliances in the United States.

  • In October 2022, Venmo announced that the firm had partnered with Amazon, thereby allowing online shoppers in the United States to make their payments using the mobile wallet service. With a strong user base of 90 million, the collaboration can drive incremental revenue for both firms. While Venmo can drive its share in the person-to-merchant category by partnering with the leader in the e-commerce industry, Amazon can also drive incremental revenue as Venmo users make more frequent online purchases compared to other prepaid payment instruments.

From the short to medium-term perspective, the publisher expects Venmo to enter into more such strategic alliances, as it continues to build on its success in the peer-to-peer category in the United States.

Digital wallets have driven sales for retailers in the United States during the Black Friday event

The surging inflation and interest rates were expected to dampen consumer spending during the 2022 Black Friday sales event. However, consumers spent over US$10 billion on online shopping during the event. Notably, the increasing usage of digital and mobile wallets has driven consumer spending during the 2022 Black Friday event.
Digital wallets have experienced a surge in usage in both the online and offline segments. As prepaid payment instruments are more widely accepted by retailers, consumers using the payment method for one activity are also using the service in adjacent sectors. For instance,

  • Consumers who are using the digital wallet for travel-related payments are also using the payment method for their meal delivery services. This interconnectedness is driving the growth of the prepaid card market in the United States.

For retailers and merchants that are seeking to drive their revenue at a time when the nation is facing recessionary fears, incorporating digital payment methods such as mobile wallets is a robust strategy to drive long-term sales.

According to the publisher, the prepaid card market (value terms) in United States increased at a CAGR of 7.7% during 2018-2022. Over the forecast period of 2023 to 2027, the market is expected to record a CAGR of 10.5%, increasing from US$542.26 billion in 2022 to reach US$903.93 billion by 2027.

This report provides a detailed data centric analysis of prepaid payment instruments, covering spend through prepaid cards and digital wallets across retail and corporate consumer segments. In addition, it provides a snapshot of consumer behaviour and retail spend dynamics in United States. With over 100 KPIs at country level, this report provides comprehensive understanding of prepaid card and digital wallet card market dynamics.

  • Market dynamics: Provides a comprehensive view on size and structure, industry dynamics, market trends, consumer attitude and behaviour, and competitive landscape in prepaid card and digital wallet industry in United States.

  • Digital wallet segments: Provides value, volume and average value per transaction across 5 key spend categories in digital wallet. This includes retail, travel, entertainment and gaming, restaurant, and recharge and bill payment.

  • Open loop and closed loop prepaid cards: market estimates and forecasts to assess opportunities 13 open loop and closed loop prepaid market segments. Details four essential KPIs - number of cards in circulation, number of transactions, load value, and value of transactions.

  • Consumer attitude and behaviour: Drawing from proprietary survey results, this report identifies and interprets key prepaid KPIs, including spend by age, gender, and income level.

  • Retail spend: Breaks down retail spend across 11 categories to provide detailed insights on consumer behaviour and changing dynamics of prepaid card spend.

Scope

This report provides a detailed data centric analysis of prepaid payment instruments, covering spend through prepaid cards and digital wallets across retail and corporate consumer segments. In addition, it provides a snapshot of consumer behaviour and retail spend dynamics in United States. With over 100 KPIs at country level, this report provides comprehensive understanding of prepaid card and digital wallet card market dynamics.

United States Digital Wallet Market Size and Forecast

  • Transaction Value Trend Analysis

  • Transaction Volume Trend Analysis

  • Average Value per Transaction

United States Digital Wallet Market Size and Forecast by Key Segments

  • Retail Shopping (Value, Volume, Avg. Value)

  • Travel (Value, Volume, Avg. Value)

  • Entertainment and Gaming (Value, Volume, Avg. Value)

  • Restaurant (Value, Volume, Avg. Value)

  • Recharge and Bill Payment (Value, Volume, Avg. Value)

United States Prepaid Card Industry Market Attractiveness

  • Load Value Trend Analysis

  • Transaction Value Trend Analysis

  • Transaction Volume Trend Analysis

  • Average Value per Transaction

  • Number of Cards

Market Share Analysis by Functional Attributes - Open Loop vs. Closed Loop
Market Share Analysis by Prepaid Card Categories
United States Open Loop Prepaid Card Future Growth Dynamics

  • Transaction Value Trend Analysis

  • Transaction Volume Trend Analysis

  • Average Value per Transaction

  • Number of Cards

United States Closed Loop Prepaid Card Future Growth Dynamics

  • Transaction Value Trend Analysis

  • Transaction Volume Trend Analysis

  • Average Value per Transaction

  • Number of Cards

United States Prepaid Card Consumer Usage Trends

  • By Age Group

  • By Income Group

  • By Gender

United States General Purpose Prepaid Card Market Size and Forecast

United States - Gift Card Market Size and Forecast

  • Gift Card Market Size and Forecast by Functional Attribute

  • By Open Loop Gift Card

  • By Closed Loop Gift Card

  • Gift Card Market Size and Forecast by Consumer Segments

  • By Retail Consumer Segment

  • By Corporate Consumer Segment

  • Gift Card Market Share Analysis by Retail Categories

  • Gift Card Market Share Analysis by Gifting Occasion

  • Gift Card Market Share Analysis by Purchase Location

United States Entertainment and Gaming Prepaid Card Market Size and Forecast

United States Teen and Campus Prepaid Card Market Size and Forecast

Teen and Campus Prepaid Card Market Size and Forecast by Functional Attribute

  • By Open Loop Teen and Campus Prepaid Card

  • By Closed Loop Teen and Campus Prepaid Card

United States Business and Administrative Expense Prepaid Card Market Size and Forecast

Business and Administrative Expense Prepaid Card Market Size and Forecast by Consumer Segments

  • By Small Scale Business Segment

  • By Mid-Tier Business Segment

  • By Enterprise Business Segment

  • By Government Segment

United States Payroll Prepaid Card Market Size and Forecast

Payroll Prepaid Card Market Size and Forecast by Consumer Segments

  • By Small Scale Business Segment

  • By Mid-Tier Business Segment

  • By Enterprise Business Segment

  • By Government Segment

United States Meal Prepaid Card Market Size and Forecast

Meal Prepaid Card Market Size and Forecast by Consumer Segments

  • By Small Scale Business Segment

  • By Mid-Tier Business Segment

  • By Enterprise Business Segment

  • By Government Segment

United States Travel Forex Prepaid Card Market Size and Forecast

Travel Forex Prepaid Card Market Size and Forecast by Consumer Segments

  • By Retail

  • By Small Scale Business Segment

  • By Mid-Tier Business Segment

  • By Enterprise Business Segment

  • By Government Segment

United States Transit and Tolls Prepaid Card Market Size and Forecast

United States Healthcare and Wellness Prepaid Card Market Size and Forecast

United States Social Security and Other Government Benefit Programs Prepaid Card Market Size and Forecast

United States Fuel Prepaid Cards Market Size and Forecast

United States Utilities, and Other Prepaid Cards Market Size and Forecast

Reasons to buy

  • In-depth understanding of prepaid card and digital wallet market dynamics: Understand market opportunity, industry dynamics, key trends and drivers across 75+ market segments and sub-segments of prepaid payment instrument in United States.

  • Develop market specific strategies: Identify growth segments and target specific opportunities to formulate your prepaid card and digital wallet strategy; assess market specific key trends, drivers and risks in the industry.

  • Get insights into consumer attitude and behaviour: Understand changing consumer attitude and behaviour and boost ROI. Get detailed insights into retail spend through prepaid cards and digital wallets.

For more information about this report visit https://www.researchandmarkets.com/r/zgtzb8

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