2. Prepaid Distribution Strategies in the United States 2013
For prepaid card program managers, distribution is top priority. New research from
Mercator Advisory Group, Prepaid Distribution Strategies in the United
States, examines the methods available to prepaid card program managers as they
look for new opportunities to get their cards in the hands of customers.
The report provides an overview of how prepaid card issuers and program managers
can expand their reach by placing their cards in new locations and leveraging new
technologies. The report also discusses the volume of dollars loaded onto prepaid
cards in both direct-to-consumer and business-to-business channels.
Distribution plans must include both business and technological facets, and this
research covers the current state of the digital card market. While these cards and
channels will become increasingly important, until now, adoption has been slow.
The prepaid card industry needs to study what business channels and technological
channels will give them a competitive edge. It is not enough to simply be where your
competitors are or to beat them to a market. The report also considers the actions
issuers and program managers should take regarding mobile wallets.
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2014 Mercator Advisory Group
3. Ben Jackson
Sr. Analyst
PrepaidAdvisory Service
Mercator Advisory Group
"Due to thin margins, prepaid programs depend on volume
for profitability. So, getting cards into many hands is critical
to success," Ben Jackson, senior analyst, Mercator
Advisory Group's Prepaid Advisory Service and author of
the report comments. "Program managers, whether handling
open-loop or closed-loop cards, have a variety of distribution
options. Understanding those options requires a grasp of
both business and technological considerations."
2014 Mercator Advisory Group
4. Highlights of the full report
• Ingredients of a strong distribution strategy for most prepaid programs
• Advances in technology that offer new ways to sell cards to customers
• Hybrid approaches for selling general purpose reloadable (GPR)
cards by using both online and in-store placements to get cards into
the hands of customers
• Business considerations that need to be included in distribution
strategy such as channel choice, partners, cost of delivery, regulatory
compliance, competition, and brand awareness
• Technological considerations, such as new form factors for
delivery, activation, and redemption
2014 Mercator Advisory Group
6. About the Full Report
This report is 27 pages long and contains 10 exhibits.
Companies mentioned in this report include: -Eleven Inc., 500
Startups, A-Grade Investments, AccountNow Inc., Affinion, Aimia
Group, American Eagle, American Express Co., Atomico, Bass Pro
Shops, Best Buy Co., Inc., Bed Bath & Beyond Inc., Blakchawk Network
Holdings Inc., CashStar Inc. Dillard’s, Inc., Dimpledough Inc., Dunkin’
Brands, epay, Euronet Worldwide Inc., Facebook, Founder Collective, Gap
Inc., Giftango, Inc., Google Inc., Google Ventures, Graylock Partners, Green
Dot Corp., Gyft, H&M, Hass Portman, InComm, InteliSpend Prepaid
Solutions, Karlin Ventures, LevelUp (SCVNGR Inc.), Martiz, Merchant
Customer Exchange (MCX), Monitise plc, National Retail
Federation, Netspend Holdings Inc. (TSYS) Nordic Financial Services Group
SEB, Qualcomm Ventures, Racetrac, RushCard (UNiRush
LLC), Sephora, Social + Capital Partnership, Starbucks Coffee Co., Target
Corp., Wal-Mart Stores, Inc. (Walmart), Wrapp
2014 Mercator Advisory Group
7. About the Full Report
Members of Mercator Advisory Group’s Prepaid Advisory Service have
access to these reports as well as the upcoming research for the year
ahead, presentations, analyst access, and other membership benefits.
For more information and media inquiries, please call Mercator Advisory
Group's main line: (781) 419-1700, send e-mail to
info@mercatoradvisorygroup.com.
For free industry news, opinions, research, company information and more visit
us at www.PaymentsJournal.com.
Follow us on Twitter @ http://twitter.com/MercatorAdvisor..
2014 Mercator Advisory Group
8. About Mercator Advisory Group
Mercator Advisory Group is the leading independent research and advisory
services firm exclusively focused on the payments and banking industries. We
deliver pragmatic and timely research and advice designed to help our clients
uncover the most lucrative opportunities to maximize revenue growth and
contain costs.
Our clients range from the world's largest payment
issuers, acquirers, processors, merchants and associations to leading
technology providers and investors. Mercator Advisory Group is also the
publisher of the online payments and banking news and information portal
PaymentsJournal.com.
2014 Mercator Advisory Group
