The European prepaid card market is set to explode in the next five years:
A total of 2.3 billion prepaid card transactions per annum anticipated by 2010,representing 5% of total card transaction volumes and 3% of total card spending.
75 billion spend expected across 360 million prepaid cards. This represents substantial growth on the 40 million cards and 150 million prepaid transactions anticipated in 2006.
Forecasts are that annual growth rates of the prepaid card market will exceed 110% for the next five years, and prepaid gifting products (card replacement for gift vouchers) will fuel a significant proportion (almost 30%) of total spent.
Other segments that will drive growth include:
Travel products, designed to offer an alternative to travelers checks and foreign cash, will account for 15% of spending.
Internet payment cards, which provide a secure alternative to credit cards, are expected to generate 13% of spending.
Company rewards and incentives programs are set to account for 12% of spending.