UK Prepaid Cards Market Size

UK Prepaid Cards Market Analysis

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.