EEA Prepaid Card Market: Increase in need for cash alternatives Drives Growth

PORTLAND, Ore. - Jan. 5, 2021 - PRLog -- Increase in need for cash alternatives, development of the e-commerce industry, and availability of affordable and energy-efficient prepaid cards have boosted the growth of the EEA prepaid card market. However, lack of standardization and fraudulent attacks hinder the market growth. On the contrary, surge in the unbanked and underbanked population would open new opportunities for the market players in the future.

As per the report by Allied Market Research, the EEA prepaid card industry was pegged at $182.64 billion in 2019, and is expected to reach $500.27 billion by 2027, registering a CAGR of 14.7% from 2020 to 2027.

The retail segment held the largest share

By end user, the retail segment dominated the market in 2019, contributing to more than half of the EEA prepaid card market, due to growing large customer base shifting from traditional shopping to online shopping in various countries of Europe.

The open-loop card segment dominated the market

By functional attribute, the global open-loop card segment held the largest share in 2019, accounting for nearly three-fifths of the EEA prepaid card market, owing to surge in demand for multipurpose prepaid cards.

The media & entertainment segment to manifest the highest CAGR through 2027

By application, the media & entertainment segment is estimated to register the highest CAGR of 17.9% during the forecast period, as numerous sports organizations across the globe have adopted prepaid card payment options for reducing major problems for owners such as tickets, pricing & change requirement, reconciliation, transaction times, and improving security.

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Major market players

• American Express Company
• JPMorgan Chase & Co.
• Kaiku Finance, LLC.
• IDT Financial Services Limited
• Moneycorp
• H&R Block, Inc.
• Mango Financial, Inc.
• Payoneer Inc.
• PayPal Holdings, Inc.
• Netspend

Covid-19 scenario:

• As pandemic has severely affected the global economy, several people lost their jobs, which has limited usage of funds in the region.
• The need to implement better product offering by providing discounts for prepaid card usage has increased during the Covid-19 pandemic.
• Even during Covid-19 pandemic, the financial services industry is highly competitive, which has created huge opportunities for market players to introduce numerous benefits & offers.