News

Study: Prepaid distribution in the US

January 13, 2014

New research from Mercator Advisory Group, "Prepaid Distribution Strategies in the United States," examines the tactics available to prepaid card program managers as they look for new ways to get their cards in the hands of customers.

The report provides an overview of how prepaid card issuers and program managers can leverage new technologies and place their cards in new locations. The report also discusses the dollar volume loaded onto prepaids in both direct-to-consumer and business-to-business channels. 

According to the report, the prepaid card industry needs to study what business and technological channels will give them a competitive edge. The report also considers the actions issuers and program managers should take regarding mobile wallets.

"Due to thin margins, prepaid programs depend on volume for profitability. So, getting cards into many hands is critical to success," said Ben Jackson, senior analyst for the prepaid advisory service at Mercator Advisory Group and author of the report. "Program managers, whether handling open-loop or closed-loop cards, have a variety of distribution options. Understanding those options requires a grasp of both business and technological considerations."

One of 10 exhibits in the 27-page report:

Read more about trends and statistics.