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03/12/2009 -
While the majority of research firms have been downwardly revising profit and spending estimates as a result of the financial crisis, payment processing industry research firm Mercator Advisory Group has actually upwardly revised the growth expectations for the U.S. prepaid card industry, growth that is likely in the Canadian payment processing industry as well.Thanks largely to the growth of the open loop prepaid card market, the overall prepaid card industry is expected to experience higher growth levels in the coming year than previously expected, reaching US$525.8 billion by 2012.
Specifically, the market for open loop cards will exceed that of closed loop cards by US$41.8 billion by 2012, said the report, released this week.
"When the prepaid market is evaluated on a segment-by-segment basis, it becomes clear that there are far more markets that are expanding or thriving in this economy than there are segments experiencing negative growth," said Tim Sloane, director for Mercator Advisory Group's prepaid advisory service.
To capitalize on this growing trend, businesses with merchant accounts are encouraged to accept both kinds of prepaid cards, experts say. Merchants unsure if their POS terminals have prepaid card processing capabilities should consult with their merchant services provider.
