No thanks, stay here.  

  We notice you are visiting from a U.S. Internet provider. Switch to our U.S. website.

Industry News

Prepaid distribution channels expand as payment processing sector grows

By Lauren Lindberg

28/12/2009 - Thanks to the growing popularity of prepaid cards, the sector has expanded to include seven major distribution channels, which can be utilized by retailers to support their prepaid and gift card sales, said a recent report.

According to payment processing industry research and advisory firm Mercator Advisory Group, the seven channels for distribution are as follows: directly to consumers in-store, directly to consumers via the company's website, to businesses for use in incentive programs through direct sales, to businesses through the company's website, to non-competitive retail partners such as banks for distribution, to third-party prepaid mall distribution partners, and to prepaid web aggregators.

The prepaid mall, in which multiple brands of gift and prepaid cards are displayed for sale to consumers, has emerged as one of the most successful distribution channels, one that Mercator expects will continue to grow in market share.

Businesses whose merchant services include prepaid payment processing are encouraged to explore these different distribution channels, said Mercator.

"A major prepaid card issuer and/or retail sponsor has the opportunity to adjust the mix of channels used, and resources devoted to each one," said Ken Paterson, vice president for research operations at Mercator Advisory Group.

Prepaid cards in general are gaining a larger foothold in the overall payment processing industry, the Wall Street Journal recently reported, thanks in part to the recessionary focus on better financial management. ADNFCR-2514-ID-19531062-ADNFCR

Related News - Merchant Account

Study highlights various factors for choosing cross-border payment processors

31/01/2012

As new payment technologies have emerged on a near-constant basis, many market leaders have overlooked the considerable hurdles of cross-border payments.

Full Article

Risk of fraud wanes among merchants, but concerns abound

24/01/2012

As ecommerce continues to broaden and expand into new territories such as mobile payments, social commerce and other innovations, the need to protect consumer financial data grows increasingly important.

Full Article

Student debt: How will Millennials pay it off?

19/01/2012

Student debt is a mounting problem in the U.S.

Full Article

Survey: Mobile payments to be defined by financial services sector in 2012

04/01/2012

While mobile payments are not expected to go mainstream in 2012, merchants can expect this year to be another breakthrough year for m-commerce and related technology.

Full Article