Creating a Multi-Billion Prepaid Cards Market in Asia

Jan. 21, 2008 - PRLog -- According to independent market research consultancy Pelorus Group, the US market for prepaid gift cards is to reach US$132 Billion by 2008. The gift card phenomenon is only one component of the prepaid market that consists of products in the open loop (such as cash cards) and closed loop (such as gift and mass transit cards) environments. There is also the Semi-closed loop environment where cards are redeemable at multiple merchants within a geographical area (such as university and mall gift cards) that are rising in popularity but still at its legal and adoption infancy stages – a space to be watched closely.

Prepaid cards have the capability of extending sophisticated loyalty functions to money and, in tracking consumer purchasing patterns, could potentially be the critical link to helping billions of unbanked individuals build creditworthiness for more sophisticated financial products. Consumers are giving prepaid the thumbs up. As more acceptance points come online, it’s really treated as familiar as paper money, minus the inconveniences of handling grubby notes or fumbling with and storing heavy coins as change. Wireless technology is enabling simpler and faster deductions making it easier for customers to spend; merchants too are likewise warming up to prepaid. Prepaid innovations continue to find uses in the B2B and public sector as well.

Mercator Advisory Group forecasts the Closed Prepaid Market in the US will grow at a Compound Annual Growth Race (CAGR) of 6.25% reaching $192.3 Billion by 2009. Though less than ¼ the size of the Closed Prepaid Market, the Open Prepaid Market will grow at a CAGR of more than 32% achieving a total spend of more than 43.8 Billion in the same year. Europe’s obsession with prepaid is smaller in transaction value than the US market but growing extremely quickly and catching up. Both markets provide a great many learning opportunities for Asia businesses where exciting opportunities exist, to some akin to the Gold Rush era of the 1850s. Gold, amounting to billions of today’s dollars, were recovered leading to great wealth for a few; many, however, returned home with little more than they started with. Prepaid “prospectors” of today would do well to learn from their successful counterparts in the US and Europe.

Enter the inaugural and long anticipated Prepaid Cards Asia Summit, hitting Singapore April 11, to serve as a meeting point for senior level cards and payments professionals to discuss the critical issues related to the prepaid card phenomenon moving into Asia. To be held in conjunction with the world renowned 13th Annual Cards Asia Exhibition at Suntec Singapore, this strategic event will attract CXO level executives from the finance, retail, travel and government sectors who wish to explore the opportunities for unlocking new revenue and increase profitability through these plastic wallets. The summit will address the question of whether there really is a compelling story for prepaid and uncover strategies to best tap into the prepaid potential for business playing in the Asia space. With the potential of mirroring the lucrative multi-billion dollar prepaid markets of US and Europe, this promises to be one of the best attended conferences of 2008 for card and payment experts and professionals in the region.

The Inaugural Prepaid Cards Asia Summit is a fitting finale to the 13th Annual Cards & Payments Asia Summit. The Summit is an unrivalled opportunity to find out about the ins and outs of the prepaid cards industry here in Asia, the latest strategies and successful programs direct from big brand names such as Bread Card, Travelex, EZ Link, Barclay’s International and JPMorgan Chase. As always, it’s not just about the insights and ideas to be gained but also the networking and partnership potential this regional platform. This high profile gathering will highlight how the global prepaid landscape is changing and paint a future vision of prepaid in the Asia Pacific region.

Asia remains one of the last frontiers for institutions to exploit this new payment instrument that is sweeping the world. “The timing for Prepaid Cards Asia is perfect for the industry,” shares Ms Patricia Cheong, General Manager at Terrapinn Singapore, “With our long standing experience and market leadership serving the industry; this is a logical extension to the Cards & Payments Asia brand in response to market trends and our customers’ needs.”

Cards & Payments Asia Summit 2008 is proud to partner the following associations and sponsors:
3M, ASSA ABLOY Identification Technologies (ITG), BPC Banking Technologies, JCB, Inside Contactless, ViVOtech, Universal Payment Services, Compass Plus, Collis, Fargo Electronics, HID Global, Zebra, Global Platform, International Card Manufacturers Association, Smart Card Forum, and Singapore Manufacturers Federation.

For more information about the Inaugural Prepaid Cards Asia Summit 2008, please visit the official event website at http://www.terrapinn.com/2008/cardsasia

# # #

Terrapinn is a global B2B media company which owns a portfolio of brand names under which it produces trade conferences, exhibitions, training courses and online publications. Terrapinn produces trade conferences ranging from Energy & Resources to Telecoms & Media, from Finance & Investment to Transport & Logistics.

Terrapinn has offices in Dubai, Johannesburg, London, New York, Singapore and Sydney. Find out more about Terrapinn and its services at our website http://www.terrapinn.com

Website: www.terrapinn.com