Changing Places: Prepaid Open Loop Cards Poised to Pass Closed Loop Dollar Loads in 2012

Abstract

The dollar loads on closed loop prepaid cards historically has topped that of open loop products by a significant amount. As open loop cards continue to become a viable replacement for check and cash-based payments and innovation continues to evolve around the products, the gap between annual dollar loads on open and closed narrows. Mercator Advisory Group observes that the current trajectory of open and closed dollar loads shows a major transition occurring at or near the year 2012 with open loop dollar loads topping closed.

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.