The landscape of payment cards has witnessed significant shifts, reflecting broader changes in consumer preferences, technological advancements, and the evolving financial ecosystem. As individuals and businesses navigate through the complexities of the global economy, the types of payment cards used—ranging from traditional credit and debit cards to innovative digital wallets and prepaid cards—play a pivotal role in shaping purchasing behaviors.
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Data for today’s episode is provided by Javelin Strategy & Research’s Report: 20th Annual U.S. Closed-Loop Prepaid Card Market Forecast, 2023-2027
Top 5 Payment Cards Used in 2023
- 82% – Major credit card usable anywhere
- 67% – Major debit card usable anywhere
- 37% – In-store gift card
- 33% – General prepaid gift card (non-reloadable)
- 32% – Store branded credit card
Source: Javelin Strategy & Research
About Report
With this report, Javelin Strategy & Research continues its annual series on market trends in the closed-loop prepaid market. In general, Javelin expects a stable environment for the prepaid ecosystem. Top categories such as in-store gifting should enjoy continued healthy growth, whereas other areas, such as transit, are strong but ripe for disruption. Economic conditions continue to make a large impact on overall market growth. Lessening budgetary and inflationary pressure should benefit the areas of consumer choice but inhibit the growth of items that depend on cost-of-living adjustments. Products such as campus cards and tolling will continue to rebound from the 2020-21 pandemic era.
Consumer sentiments remain positive overall, with American buyers showing strong belief in the closed-loop market. Javelin research highlights healthy spending patterns in prepaid cards as well as the frequency of purchases, with a prime opportunity to capitalize on consumers’ willingness to purchase more prepaid cards in the coming year.