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The introduction of internet technology in banking sector is expected to boost the demand for cashless transaction among banking customers. However, a large number of banking customers are using cash and traditional banking products such as cheques and demand draft instead of credit and debit cards for daily financial transaction. This is due to the fear of hidden cost and convenience issue associated with cashless payment cards. The banking sector is trying to overcome these issues through offering prepaid credit cards.

Prepaid credit card looks similar to a credit or debit card with a card number, brand and signature field on it. A prepaid credit card is issued by a financial institution and performs the functions of a credit card except that a certain amount needs to be preloaded in account. The card holder can use the card for purchasing items till the preloaded amount gets finished. Prepaid credit card limits the borrowing of funds from the financial institution after preloaded amount is finished. The issuing of prepaid credit card does not require bank account of the card holder. Instead the amount is stored in a temporary bank account till the amount is fully used. This factor is expected to boost the adoption of prepaid credit card for non bank account customers in coming years.

Financial institutions are enabling use of prepaid credit card in automated teller machine (ATM) and point of sale (POS) terminals. If the card gets stolen or damaged, the institution is able to issue new card on basic customer information. The remaining amount in previous card gets transferred into new card automatically. Prepaid credit card eliminates the fee and interest associated with normal credit cards. Thus, the customers don’t have to worry about the risk associated with hidden costs in use of credit cards. Prepaid credit cards are available in various forms in market depending upon the type of application. Gift cards are the most commonly used prepaid credit card available in market.

The customer is able to use the gift card for purchasing the items in market through POS terminal or online shopping. Meal cards offer convenience of providing meal allowance through prepaid credit card platform. Payroll card is another type of prepaid credit card which allows an enterprise to pay salaries, incentives and reimbursements to the employees. The enterprise is able to credit the monthly salary for every month in the employee’s temporary account. Financial institutions are now providing forex, travelling and reward card depending upon the customer’s requirement. 

The prepaid credit card finds its application among young adults, college students and old age people. Prepaid credit card eliminates the need of carrying cash which help the young and college students to carry equivalent amount of cash in form of a plastic card. The parents can also track the amount spend from the card time to time. 

Some of the major financial institutions providing prepaid credit card are Visa, Inc., American Express Company, MasterCard Inc., Kaiku Finance, LLC, Mango Financial, Inc., Total System Services, Inc., Citigroup and The PNC Financial Services Group, Inc. 

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

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