According to Juniper Research, the value of prepaid card transactions will surpass $4.1 trillion globally in 2026, up from $2.3 trillion in 2021, representing a 75 percent increase.
As nations move toward digital payments, the expansion of prepaid cards will be encouraged by the growing cash replacement. The value of prepaid card transactions will be slightly over 50% higher than contactless transaction value by 2026. This will demonstrate the importance of this sector.
According to the study, prepaid cards are recognized as crucial in ensuring that the unbanked are included in the digital payment boom. According to the report, vendors should focus on developing robust distribution infrastructure capable of issuing cards at scale and a reasonable cost, or they will be losing out to vendors that are more equipped.
Prepaid Cards drive significant Fee Revenue
Prepaid Cards: Demographics, Vendor Strategies, and Market Forecasts 2022-2026 revealed that the prepaid market’s expansion will provide prepaid card platforms with a large income opportunity, with fee revenue reaching over $32 billion globally in 2026, up from $22 billion in 2021. According to the research, focusing on important skills, such as restricted authorization, which allows issuers to specify where money can be spent, will pay off in the long run.
Research author Nick Maynard explained: “Tools such as restricted authorization and digital issuance will enable prepaid cards to benefit from the evolution of traditional gift cards into full-blown prepaid cards, driving significant revenue.”
Although the US Is Leading In The Prepaid Market, However, Others Are Also Emerging
According to the study, while the United States will account for over 43% of worldwide transaction values in 2026, other important opportunities will emerge. Prepaid cards for vacation money are becoming more popular in China, and when foreign tourism recovers, prepaid cards for travel money may benefit. The research highlighted developing markets as a significant area of interest, advising platforms to form partnerships to benefit prospects effectively.