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The global pandemic had a serious impact on the UK economy affecting the Brick-and-Mortar retailer due to covid-related lockdown and restrictions. However, in 2020, due to the social distance requirement and lockdowns that compelled people to purchase from their homes, digital gift card and eVoucher sales in the UK increased by over 50%. Prepaid cards are still very popular in the UK, with more and more people using them for gifting, travel, transportation, and online shopping.
Credit and Debit cards are the popular method of payment in the UK. The rise in prepaid cards has gone hand-in-hand with the decline in credit card usage in the UK. Due to increased corporate use, prepaid cards are also seeing rapid development in the country. In addition, the UK government is pushing for the usage of prepaid cards for welfare payments. In the United Kingdom, card issuers are concentrating on developing prepaid solutions that cater to specific retail groups such as international tourists, students, and migratory workers. The prepaid card solutions that offer enhanced spending control features that allow better tracking and reporting capabilities are most favored by consumer in the UK.
The e-commerce as well as online payments and transaction are increasing drastically while instances of online fraud and scam are also increasing proportionately. Consumer are seeking greater protection from online fraud and switching to new ways to access services and goods and increasingly adopting prepaid cards as they prefer set amount of pre-loaded money rather than accessing money directly form a person’s account or paying through credit card bills. Prepaid cards are mostly being used for online shopping in UK to avoid the risk of bank or credit card details being stolen by the scammers.
Scope of the Report
A prepaid card is one that can be used to make purchases across the physical or the online store. Prepaid Card is purchased as a card with funds pre-loaded on it. The card can then be used to make purchases up to that amount. A prepaid card is sometimes known as a stored-value card or a prepaid debit card. This report aims to provide a detailed analysis of the UK Prepaid Cards Market. It focuses on the market dynamics, emerging trends in the segments, the future of markets, and insights on various drivers and restraints. Also, it analyses the key players and the competitive landscape in the market. The UK Prepaid Cards Market can be segmented By Card Type (Multi-Purpose, Single-purpose), By Vertical (Retail, Corporate Institutions, Government, Financial Institutions & Others), and By Usage (General Purpose Reloadable Cards, Gift Card, Government Benefits Disbursement Card, Incentive Payroll Card).
|By Card Type|
|By Service Type|
|General Purpose Reloadable Cards|
|Government Benefit/ Disbursement Cards|
|Incentive/ Payroll Cards|
Key Market Trends
Commercial Prepaid Card Segment is Driving the Market
The commercial prepaid segment is projected to have a massive growth rate in the forecasted period. The increased growth rate for the commercial segment is higher compared to other categories as the adoption rate for prepaid card solutions is significantly higher for corporate clients. The prepaid solutions offer enhanced spending control features that allow the commercial users better tracking and reporting capabilities. Similarly, the UK government is also supporting the adoption of prepaid cards in various ways. As part of its support for prepaid cards, the Northern Ireland government stated that it will provide free shopping prepaid cards to adults. The government's prepaid card scheme would give 1.4 million residents in Northern Ireland over the age of 18 an extra GBP100 to spend on the high street.
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UK Prepaid Spending Per Capita is One of the Highest in the World.
UK prepaid spending per capita is one of the highest in the world. It is significantly higher than the World's average prepaid spending. The non-commercial prepaid spending per capita is raising continuously due to the increased adoption of prepaid cards for e-commerce purchases and travel spending. Similarly, the increasing launch of digital particularly B2B is also one of the drivers of the increased per capita prepaid spending in the United Kingdom. New players from diverse sectors are also constantly implementing prepaid cards, especially in the travel, tourism, and hospitality industry. The improvement in technology with the launch of innovative card design, function, and improved security has further increased the appeal of the prepaid card in the country.
The UK Prepaid Cards Market is highly fragmented as a large number of players are providing various prepaid cards such as gift cards, incentive cards, Corporate Payroll Cards, Travel Cards, etc. In the prepaid card market, companies are pursuing numerous strategic initiatives such as partnerships and collaborations, which are gaining substantial traction. To entice more customers, they are cooperating with other market players to offer prepaid cards with adjustable credit limits and other perks. Some of the major players in the market include Cashplus, Spree Card, Caxton, Centtrip, Revolut, etc.
- In July 2021, Soldo, a startup that issues prepaid company cards to employees that are linked to an automated spending management system, has raised USD 180 million in funding. Soldo presently has 26,000 customers in 30 countries, ranging from small to medium-sized businesses to midmarket companies and huge multinationals.
- In March 2021, Cashplus, a leading fintech SME bank, added five more prominent Payroll technology platforms to its growing roster of Payments API partners. The Cashplus Payment API is a Banking as a Service offering that employs Open Banking technology to allow Payroll Software Platforms to integrate Bulk Payment functionality directly into their own Payroll, allowing their clients to make bulk payments with ease.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Driver
4.3 Market Restraints
4.4 Porters 5 Force Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Insight on Various Government Regulations in the Market
4.6 Insight on Technologial Adoption in the Market
4.7 Impact of Covid 19 on market
5. MARKET SEGMENTATION
5.1 By Card Type
5.1.1 Multi-Purpose Card
5.1.2 Single-Purpose Card
5.2 By Vertical
5.2.2 Corporate Institutions
5.2.4 Financial Institutions
5.3 By Service Type
5.3.1 General Purpose Reloadable Cards
5.3.2 Gift Cards
5.3.3 Government Benefit/ Disbursement Cards
5.3.4 Incentive/ Payroll Cards
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Cash Plus
6.2.5 Spree Cards
6.2.8 Brinks Incorporated
6.2.10 Equals Money*
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
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Frequently Asked Questions
What is the study period of this market?
The UK Prepaid Cards Market market is studied from 2018 - 2027.
What is the growth rate of UK Prepaid Cards Market?
The UK Prepaid Cards Market is growing at a CAGR of 7% over the next 5 years.
Who are the key players in UK Prepaid Cards Market?
Cash Plus, Caxton, Centtrip, Revolut, Spree Cards are the major companies operating in UK Prepaid Cards Market.