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Research: 'Card malls' should be part of prepaid distribution strategy

The total dollar volume loaded through card malls grew 19 percent in 2013, and new research says growth will continue.

August 15, 2014

A new research note from Mercator Advisory Group, "Prepaid Card Mall Volumes Continue to Grow in the U.S.," examines the size and diversity of prepaid loads through card malls hosted in third-party retailer locations. These cards offer consumers a way to buy gifts, access financial services, and obtain cell phone service.

The total dollar volume loaded through card malls grew at a pace of 19 percent in 2013. This growth indicates the importance of the channel to shoppers and shows why prepaid providers should consider card malls as part of their overall prepaid distribution strategy.

"Card malls represent an important distribution channel for prepaid providers of all types, because they provide convenience and a way to turn cash into digital currency," said Ben Jackson, Mercator Advisory Group director of prepaid advisory service and author of report.

Highlights of the note include:

estimates of the market size in the United States for prepaid loads made through card malls hosted by other retailers;

examination of diversity of cards and services offered through prepaid card malls, despite common "gift card mall" perception;

Discussion of continued steady pace of growth for the card mall business, which provides an anchor point for digital services that are delivered via PIN on receipt.

One of eight exhibits included in the research note: