Industry Reports

Prepaid Cards in the US, 9th Edition

This report presents a deeply detailed analysis of the opportunities and challenges confronting the companies participating in the prepaid card segment, whether they be card managers, marketers or issuers.

Prepaid Cards in the US, 9th Edition cover

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  • Executive Summary
    • Report Scope
    • Methodology
    • Executive Summary
      • US Prepaid Card Market Size and Forecast
      • Prepaid Gift Card Trends
      • Government-Administered Prepaid Card Trends
      • General-Purpose Reloadable (GPR) Prepaid Card Trends
      • HSA and HSA Prepaid Card Use Trends
      • Payroll Prepaid Card Trends
      • Money Network (Fiserv)
  • Market Size and Forecast
    • US Prepaid Card Market Size and Forecast
      • Payment Value to Reach $642.1 Billion in 2025
        • Table | US Prepaid Card Payment Value 2019-2025 ($ billion)
      • Open-Loop vs. Closed-Loop Prepaid Card Payment Value
        • Table | US Prepaid Card Payment Value: Open-Loop Cards vs. Closed-Loop Cards 2019-2025 ($ billion)
      • Open-Loop Prepaid Card Payment Value, by Card Type
        • Table | US Open-Loop Prepaid Card Payment Value by Card Type 2019-2025 ($ billion)
        • Table | US Open-Loop Prepaid Card Payment Value by Card Type 2020-2025 (% annual change)
      • Closed-Loop Prepaid Card Market Size by Card Type
        • Table | US Closed-Loop Prepaid Card Payment Value, by Card Type 2019-2025 ($ billion)
        • Table | US Closed-Loop Prepaid Card Payment Value, by Card Type 2020-2025 (% annual change)
    • Prepaid Card Usage Context: Trends over Time
      • General-Purpose Prepaid Card Usage Has Grown Wildly as Programs Consolidate
        • Table | Prepaid/Gift Card Users by Card Type, 2019-2025
  • Prepaid Gift Card Trends
    • Prepaid Gift Card Purchasing in 2025
      • Roughly One-Third of Adults Purchase Gift Cards
      • Closed-Loop Retailer Gift Cards Rule: Amazon Wallops other Retailer Card Options
      • Foodservice Prepaid Gift Cards Also Perform Well
      • Visa Prepaid Gift Cards Purchase Penetration Trumps Network-Branded Competition
      • Analysis by Generation and HH Income
        • Table | Prepaid Gift Card Purchasers, by Retailer, Foodservice, and Network-Branded Card Segment, and Sub- S
        • Table | Prepaid Gift Card Purchasers, by Retailer, Foodservice, and Network-Branded Card Segment and Sub- Se
        • Table | Prepaid Gift Card Purchasers, by Retailer, Foodservice, and Network-Branded Card Segment and Sub- Se
    • Prepaid Gift Card Purchasing from 2019 to 2025
      • Post-Pandemic Prepaid Gift Card Purchasing Trends Downward
        • Table | Prepaid/Gift Card Purchasers, 2019-2025
      • Amazon Gift Card Purchase Penetration More Than Doubles in Five Years
      • Traditional Brick-and-Mortar Retailers Take It on the Chin
        • Table | Retailer/Foodservice Prepaid/Gift Card Purchasers, by Retailer/Foodservice Establishment Type, 2019-
      • Network-Branded Prepaid Gift Cards Hold Steady
        • Table | Network-Branded Prepaid/Gift Card Purchasers, by Card Network, 2019-2025
      • Amounts Spent on Gifts Cards
        • Table | Prepaid Gift Card Purchasers: Amount Spent in Total, Share by Dollar Value, 2019-2025
    • Gift Card Distribution Source
      • Plastic Still Rules
      • Gen Zers and Millennials Skew Digital
        • Table | Share of Prepaid/Gift Card Purchasers Who Bought Plastic, Digital, and Print-at-Home Cards, 2021-202
        • Table | Share of Prepaid/Gift Card Purchasers Who Bought Plastic, Digital, and Print-at-Home Cards, by Respo
        • Table | Share of Prepaid/Gift Card Purchasers Who Bought Plastic, Digital, and Print-at-Home Cards, by Respo
      • And the Rack Still Pulls Weight
      • Over 40% of Consumers Purchase Gift Cards with Points—the Primary Route for Over 20%
        • Table | Places Where Consumers Purchase Gift Cards: All Source and Primary Source, 2025
    • Receiving Gift Cards
      • Family Members Most Prevalent Source
      • Receiving from Others Outside of Family and Friends Is on the Rise
        • Table | Prepaid/Gift Card Recipients: Share Who Receive, by Type of Giver, 2019-2025
    • Gift Card Usage
      • Closed-Loop Options Trump General-Purpose Cards
        • Table | Prepaid Gift Cards Used in the Past 12 Months, by Card Type, 2025
      • Coffeehouse/Restaurant Prepaid Gift Cards: Usage Rationales
        • Table | Top 15 Most Visited Fast Food & Drive-in Restaurants: Purchase Frequency Segmentation 2025
        • Table | Reasons for Using a Closed-Loop Coffeehouse/Restaurant Prepaid Gift Card, by Percent of Respondents
        • Table | Reasons for Using a Closed-Loop Coffeehouse/Restaurant Prepaid Gift Card, by Percent of Respondents
    • Closed-Loop Prepaid Gift Card Loading Behavior
      • Users Most Prevalently Load Their Cards Via Mobile Phone
        • Table | Where Closed-Loop Prepaid Card Users Load Funds onto Their Cards, by Location/Method, October 2023
    • Gift Card Redemption Behavior
      • Spending More and Spending Less Than the Value of the Card Translates to a Retailer Win
        • Table | Share of Prepaid Gift Card Users Who Typically Spend More, The Same, and Less Than Amount on the Car
      • Consumers Are Increasingly Redeeming Their Gift Cards Within One Month of Receipt
        • Table | Share of Prepaid Gift Card Users Who Redeem, by Redemption Time Frame, 2019-2025
      • Gen Zers are Quick to Redeem Their Gift Cards
        • Table | Share of Prepaid Gift Card Users Who Redeem, by Redemption Time Frame, 2019-2025
    • Gift Card Breakage Income: Not Pocket Change
      • Starbucks Reaps More Than $200 Million Annually from Breakage
      • But Retailers and Restaurant Operators Across the Board Also Cash In
        • Table | Gift Card Breakage Income, Company Revenue, and Breakage Share of Revenue: Selected Restaurants and
      • The Result: Billions in Breakage Income for Retail Establishments
    • Gift Card Fraud Is on the Rise
      • Legislators Act
  • Government-Administered Prepaid Card Trends
    • Federal Prepaid Card Programs: Direct Express Mastercard
      • Direct Express Finds a New Home
      • A Slow Transition
      • Bank of New York Mellon Gets a Lukewarm Program Balance Sheet and a Liquidity Boost
        • Table | Comerica Direct Express Program, Selected Metrics, 2023-2024 ($ billion and $ million)
      • But Declining Direct Express Enrollment Translates to Slow Disbursement Growth
      • Payment Value Growth Is a Bright Spot
      • Incremental Program Growth Expected for 2025—Barring Wildcards
        • Table | Federal Government Network-Branded Prepaid Card Disbursement Value, Payment Value, and Payment Value
    • State and Local EBT/Prepaid Card Programs
      • Post-Pandemic Normalization
        • Table | State and Local Government Prepaid Card Disbursement Value: EBT vs. Network-Branded Prepaid Cards, 2
      • EBT Programs Remain Above $100 Billion Threshold
        • Table | EBT Prepaid Card Disbursement Value by Program, 2019-2025 ($ billions)
      • State General-Purpose Prepaid Card Programs
        • Table | State and Local Network-Branded Prepaid Card Disbursement Value and Payment Value, 2019-2025 ($ bill
    • Key State and Local Government-Administered Prepaid Card Players
      • Network-Branded Prepaid Card Programs
      • EBT Card Programs: Most Roads Lead to Conduent
        • Table | Conduent Incorporated Government-Administered Prepaid Card Disbursement Value, 2019-2024 ($ billions
        • Table | Conduent Incorporated: Number of States Serviced, by EBT, EBT for WIC, and Childcare Program 2019-20
  • General-Purpose Reloadable Prepaid Card Trends
    • Overview
      • Financial Inclusion Net Has Broadened, Imperiling GPR Prepaid Cards
        • Table | Percentage of US Households That Are Unbanked, 2023, 2015, 2017, 2019, 2021, and 2023
        • Table | Percentage of US Adults Who Are Banked, Fully Banked, Underbanked, and Unbanked, October 2023
      • Improved Access to Mainstream Financial Services Reduces the Need for Prepaid Cards
      • General-Purpose Prepaid Card Usage Remains Elevated Among Unbanked and Underbanked
        • Table | Prepaid/Gift Card Users, by Card Type and Banked Status, October 2023
    • How App-Based Digital Banking Has Reshaped GPR Prepaid Industry
      • Neobanks and Digital Wallet Ecosystems Broaden Access to Mainstream Financial Services
      • Neobank O.G. Chime: Setting the Standard for GPR Prepaid Cards to Match
      • Chime vs. Walmart MoneyCard: Chime Has the Upper Hand on Fees and Features
        • Table | Account Fees, Chime vs. Walmart MoneyCard, 2025
        • Table | Account Features: Chime vs. Walmart MoneyCard, 2025
      • Apple Cash and Cash App Card Serve as Mobile Wallet Ecosystem Lynchpins
        • Table | Cash App Product Introduction Timeline, 2013-2025
      • Apple Cash and Square’s Cash App Card Consolidate the GPR Prepaid Card Market
        • Table | Percentage of Online/Mobile Payment Users, by Payment Brand and General-Purpose Prepaid Card Use, Oc
      • Mobile Wallets Must Be a Part of The Prepaid Card Equation
    • General-Purpose Prepaid Card Usage Rationales in 2025
      • Key Findings
        • Table | Reasons for Choosing a Prepaid Card for Everyday Use, by Percent of Respondents Saying Reason Is “Ve
        • Table | Reasons for Choosing a Prepaid Card for Everyday Use, by Percent of Respondents Saying Reason Is “Ve
        • Table | Reasons for Choosing a Prepaid Card for Everyday Use, by Percent of Respondents Saying Reason Is “Ve
  • Healthcare Prepaid Card Trends
    • Overview
      • The Prepaid Card Connection
    • HSA and HSA Prepaid Card Use Trends
      • HSA Account Growth Explodes
        • Table | Total US HSA Assets, Segmented by Investments and Deposits, 2016-2027 ($ billions)
      • Contributions Continue to Outstrip Withdrawals
        • Table | Total US HSA Contributions, Withdrawals, and Retained Assets, 2016-2024 ($ billion)
      • Growing Withdrawal Amounts Fuel More Than $30 Billion in HSA Prepaid Card Spend
        • Table | Total US HSA Withdrawals: Prepaid Card Spend Share, 2016-2024 ($ billions)
    • Key Prepaid Healthcare Card Players
      • WEX
        • Table | WEX Inc. Benefits Segment., Purchase Value, Accounts, Assets, Revenue, and Yield 2022-2024 ($ millio
      • HealthEquity
        • Table | HealthEquity: Number of Accounts by Type, 2023-2024 (million)
        • Table | Health Equity: Revenue, by Type, 2023-2024 ($ million)
        • Table | Health Equity: HSA Assets by Type, 2023-2024 ($ billion)
  • Payroll Prepaid Card Trends
    • Payroll Prepaid Card Use Trends
      • Earned Wage Products Drive Growth
      • Instant Payroll Solutions Accelerate Payroll Card Growth
    • Key Paycard Programs
      • Money Network (Fiserv)
      • Wisely (ADP)
      • rapid! (Green Dot)
        • Table | Green Dot rapid! PayCard Segment: Gross Dollar Value, Purchase Value, Active Accounts, and Revenue,
  • Prepaid Card Marketer and Issuer Strategies
    • Overview
    • The Bancorp, Inc.
      • Regional Lender and Prepaid and Debit Card Leader
      • Ten Affinity Partners Contribute 89% of Payments-Related Deposits
      • Chime, HealthEquity, and PayPal, oh my!
      • Sizzling Card Spend Growth
        • Table | The Bancorp: Prepaid and Debit Card Gross Dollar Value, 2019-2024 ($ billion)
      • Deposits on the Rise, Thanks to Debit and ACH
        • Table | The Bancorp: Fintech Solutions Group Year-End Deposits, 2019-2024 ($ billion)
        • Table | The Bancorp: Selected Non-Interest Income Metrics, 2019-2024 ($ million)
    • Green Dot Corporation
      • Operating Segments
      • Segment Performance
        • Table | Green Dot Consumer Services Operating Segment: Gross Dollar Value, Purchase Value, Active Accounts,
        • Table | Green Dot B2B Services Operating Segment: Gross Dollar Value, Purchase Value, Active Accounts, and R
        • Table | Green Dot Money Movement Operating Segment: Number of Cash Transfers, Number of Processed Tax Refund
      • Apple Cash Is on a Growth Tear
      • As Apple’s Star Brightens, Walmart’s Star Dims
        • Table | Green Dot Operating Revenue: Total, Walmart, Apple, and Other, 2018-2024 ($ million)
    • Pathward Financial
      • Partner Solutions
      • Payments Supply the Deposits
      • Card Brands and Segments
      • Key Partners and Segments
      • Performance Trends
        • Table | Pathward Financial: Deposits, Non-Interest Income, and Net Interest Income, with Segment Detail, 202
  • Appendix
    • Terms and Definitions
      • Prepaid Card Definitions
      • Other Definitions
What are prepaid cards?

Prepaid cards are not connected to a traditional checking or savings account. Instead, users load money directly onto the card, and their spending is limited to the amount loaded. Many prepaid cards can be reloaded with funds, via direct deposit, cash reload at retailers, or bank transfers.

What is the difference between a prepaid card/prepaid card account and a debit card/debit account?

Debit cards are directly tied to a checking or savings account at a bank or credit union. When users make a purchase, funds are immediately withdrawn their linked accounts. They can spend up to the available balance in your account, and sometimes more if they have overdraft protection.

What types of prepaid cards are covered in this report?

This report includes analysis of reloadable and nonreloadable prepaid cards; open-loop (network-branded or general-purpose) prepaid cards, such as consumer general-purpose reloadable prepaid cards, open-loop gift cards; healthcare cards, customer refund & incentive cards, payroll cards, and government cards; and closed-loop (private label) prepaid cards, such as gift cards, EBT cards, and customer refund & incentive cards.

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