Prepaid Cards in the US, 9th Edition

Description

The Packaged Facts report, Prepaid Cards in the US, 9th Edition, addresses the US market for prepaid debit cards, with segmentation by card type. This report relies on proprietary, trended data to identify how competitive shifts, product innovation, and consumer preference changes are influencing prepaid card category growth. It also includes market sizing for the prepaid card market, by segment.

Prepaid card trends are identified across card types. Examples range from purchasing behavior, distribution/location behavior, and loading and redemption behavior to EWA, and instant payroll, and neobanks. Payment value estimates are provided by card segment. Analysis of key players includes key relationships, performance metrics, and account growth. The report contains a wealth of proprietary data that is trended back to 2019.

Product Code: LA19999797

Table of Content

CHAPTER 1: 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
Prepaid Card Marketer and Issuer Strategies

CHAPTER 2: MARKET SIZE AND FORECAST

US PREPAID CARD MARKET SIZE AND FORECAST
Payment Value to Reach $642.1 Billion in 2025

Table 2-1. US Prepaid Card Payment Value 2019-2025 ($ billion)

Open-Loop vs. Closed-Loop Prepaid Card Payment Value

Table 2-2. 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 2-3. US Open-Loop Prepaid Card Payment Value by Card Type 2019-2025 ($ billion)
Table 2-4. US Open-Loop Prepaid Card Payment Value by Card Type 2020-2025 (% annual change)

Closed-Loop Prepaid Card Market Size by Card Type

Table 2-5. US Closed-Loop Prepaid Card Payment Value, by Card Type 2019-2025 ($ billion)
Table 2-6. 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 2-7. Prepaid/Gift Card Users by Card Type, 2019-2025

CHAPTER 3: PREPAID GIFT CARD TRENDS

PREPAID GIFT CARD PURCHASING IN
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 3-1. Prepaid Gift Card Purchasers, by Retailer, Foodservice, and Network-Branded Card Segment, and Sub-Segment, 2025
Table 3-2. Prepaid Gift Card Purchasers, by Retailer, Foodservice, and Network-Branded Card Segment and Sub-Segment: Cross-Tabbed by Respondent Generation, 2025
Table 3-3. Prepaid Gift Card Purchasers, by Retailer, Foodservice, and Network-Branded Card Segment and Sub-Segment: Cross-Tabbed by Respondent HH Income, 2025

PREPAID GIFT CARD PURCHASING FROM 2019 TO
Post-Pandemic Prepaid Gift Card Purchasing Trends Downward

Table 3-4. 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 3-5. Retailer/Foodservice Prepaid/Gift Card Purchasers, by Retailer/Foodservice Establishment Type, 2019-2025

Network-Branded Prepaid Gift Cards Hold Steady

Table 3-6. Network-Branded Prepaid/Gift Card Purchasers, by Card Network, 2019-2025

Amounts Spent on Gifts Cards

Table 3-7. Prepaid Gift Card Purchasers: Amount Spent in Total, Share by Dollar Value, 2019-2025

GIFT CARD DISTRIBUTION SOURCES
Plastic Still Rules
Gen Zers and Millennials Skew Digital

Table 3-8. Share of Prepaid/Gift Card Purchasers Who Bought Plastic, Digital, and Print-at-Home Cards, 2021-2025
Table 3-9. Share of Prepaid/Gift Card Purchasers Who Bought Plastic, Digital, and Print-at-Home Cards, by Respondent Generation, 2025
Table 3-10. Share of Prepaid/Gift Card Purchasers Who Bought Plastic, Digital, and Print-at-Home Cards, by Respondent HH Income, 2025

And the Rack Still Pulls Weight
Over 40% of Consumers Purchase Gift Cards with Points-the Primary Route for Over 20%

Table 3-11. Places Where Consumers Purchase Gift Cards: All Sources 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 3-12. Prepaid/Gift Card Recipients: Share Who Receive, by Type of Giver, 2019-2025

GIFT CARD USAGE
Closed-Loop Options Trump General-Purpose Cards

Table 3-13. Prepaid Gift Cards Used in the Past 12 Months, by Card Type, 2025

Coffeehouse/Restaurant Prepaid Gift Cards: Usage Rationales

Table 3-14. Top 15 Most Visited Fast Food & Drive-in Restaurants: Purchase Frequency Segmentation 2025
Table 3-15. Reasons for Using a Closed-Loop Coffeehouse/Restaurant Prepaid Gift Card, by Percent of Respondents Saying Reason Is "Very Important," 2025
Table 3-16. Reasons for Using a Closed-Loop Coffeehouse/Restaurant Prepaid Gift Card, by Percent of Respondents Saying Reason Is "Very Important" and by Generation, 2025

CLOSED-LOOP PREPAID GIFT CARD LOADING BEHAVIOR
Users Most Prevalently Load Their Cards Via Mobile Phone

Table 3-17. 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 3-18. Share of Prepaid Gift Card Users Who Typically Spend More, The Same, and Less Than Amount on the Card, 2019-2025

Consumers Are Increasingly Redeeming Their Gift Cards Within One Month of Receipt

Table 3-19. Share of Prepaid Gift Card Users Who Redeem, by Redemption Time Frame, 2019-2025

Gen Zers are Quick to Redeem Their Gift Cards

Table 3-20. 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 3-21. Gift Card Breakage Income, Company Revenue, and Breakage Share of Revenue: Selected Restaurants and Retailers, 2024

The Result: Billions in Breakage Income for Retail Establishments
GIFT CARD FRAUD IS ON THE RISE
Legislators Act

CHAPTER 4: 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 4-1. 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 4-2. Federal Government Network-Branded Prepaid Card Disbursement Value, Payment Value, and Payment Value, Share, 2019-2025 ($ billion)

STATE AND LOCAL EBT/PREPAID CARD PROGRAMS
Post-Pandemic Normalization

Table 4-3. State and Local Government Prepaid Card Disbursement Value: EBT vs. Network-Branded Prepaid Cards, 2019-2025 ($ billion)

EBT Programs Remain Above $100 Billion Threshold

Table 4-4. EBT Prepaid Card Disbursement Value by Program, 2019-2025 ($ billions)

State General-Purpose Prepaid Card Programs

Table 4-5. State and Local Network-Branded Prepaid Card Disbursement Value and Payment Value, 2019-2025 ($ billions)

KEY STATE AND LOCAL GOVERNMENT-ADMINISTERED PREPAID CARD PLAYERS
Network-Branded Prepaid Card Programs
EBT Card Programs: Most Roads Lead to Conduent

Table 4-6. Conduent Incorporated Government-Administered Prepaid Card Disbursement Value, 2019-2024 ($ billions)
Table 4-7. Conduent Incorporated: Number of States Serviced, by EBT, EBT for WIC, and Childcare Program 2019-2024

CHAPTER 5: GENERAL-PURPOSE RELOADABLE PREPAID CARD TRENDS

OVERVIEW
Financial Inclusion Net Has Broadened, Imperiling GPR Prepaid Cards

Table 5-1. Percentage of US Households That Are Unbanked, 2023, 2015, 2017, 2019, 2021, and 2023
Table 5-2. 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 5-3. 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 5-4. Account Fees, Chime vs. Walmart MoneyCard, 2025
Table 5-5. Account Features: Chime vs. Walmart MoneyCard, 2025

Apple Cash and Cash App Card Serve as Mobile Wallet Ecosystem Lynchpins

Table 5-6. Cash App Product Introduction Timeline, 2013-2025

Apple Cash and Square's Cash App Card Consolidate the GPR Prepaid Card Market

Table 5-7. Percentage of Online/Mobile Payment Users, by Payment Brand and General-Purpose Prepaid Card Use, October 2023

Mobile Wallets Must Be a Part of The Prepaid Card Equation
GENERAL-PURPOSE PREPAID CARD USAGE RATIONALES IN
Key Findings

Table 5-8. Reasons for Choosing a Prepaid Card for Everyday Use, by Percent of Respondents Saying Reason Is "Very Important," 2025
Table 5-9. Reasons for Choosing a Prepaid Card for Everyday Use, by Percent of Respondents Saying Reason Is "Very Important," by Respondent HH Income, 2025
Table 5-10. Reasons for Choosing a Prepaid Card for Everyday Use, by Percent of Respondents Saying Reason Is "Very Important," by Respondent Card Type, 2025

CHAPTER 6: HEALTHCARE PREPAID CARD TRENDS

OVERVIEW
The Prepaid Card Connection
HSA AND HSA PREPAID CARD USE TRENDS
HSA Account Growth Explodes

Table 6-1. Total US HSA Assets, Segmented by Investments and Deposits, 2016-2027 ($ billions)

Contributions Continue to Outstrip Withdrawals

Table 6-2. 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 6-3. Total US HSA Withdrawals: Prepaid Card Spend Share, 2016-2024 ($ billions)

KEY PREPAID HEALTHCARE CARD PLAYERS
WEX

Table 6-4. WEX Inc. Benefits Segment., Purchase Value, Accounts, Assets, Revenue, and Yield 2022-2024 ($ million)

HealthEquity

Table 6-5. HealthEquity: Number of Accounts by Type, 2023-2024 (million)
Table 6-6. Health Equity: Revenue, by Type, 2023-2024 ($ million)
Table 6-7. Health Equity: HSA Assets by Type, 2023-2024 ($ billion)

CHAPTER 7: 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 7-1. Green Dot rapid! PayCard Segment: Gross Dollar Value, Purchase Value, Active Accounts, and Revenue, 2021-2024 ($ billion and $ million)

CHAPTER 8: 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 8-1. The Bancorp: Prepaid and Debit Card Gross Dollar Value, 2019-2024 ($ billion)

Deposits on the Rise, Thanks to Debit and ACH

Table 8-2. The Bancorp: Fintech Solutions Group Year-End Deposits, 2019-2024 ($ billion)
Table 8-3. The Bancorp: Selected Non-Interest Income Metrics, 2019-2024 ($ million)

GREEN DOT CORPORATION
Operating Segments
Segment Performance
Consumer Services deposit account programs take it on the chin

Table 8-4. Green Dot Consumer Services Operating Segment: Gross Dollar Value, Purchase Value, Active Accounts, and Revenue, with Retail and Direct Channel Sub-Segmentation, 2021-2024 ($ billion, $ million, $, and # million)

B2B Services gets BaaS partnership boost from Apple

Table 8-5. Green Dot B2B Services Operating Segment: Gross Dollar Value, Purchase Value, Active Accounts, and Revenue, Sub-Segmented by BaaS and PayCard Divisions, 2021-2024 ($ billion, $ million, $, and # million)
Table 8-6. Green Dot Money Movement Operating Segment: Number of Cash Transfers, Number of Processed Tax Refunds, and Revenue, 2021-2024 ($ million and # million)

Apple Cash Is on a Growth Tear
As Apple's Star Brightens, Walmart's Star Dims

Table 8-7. 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 8-8. Pathward Financial: Deposits, Non-Interest Income, and Net Interest Income, with Segment Detail, 2022-2024 ($ million)

CHAPTER 9: APPENDIX

TERMS AND DEFINITIONS
Prepaid Card Definitions
Other Definitions