The Resilient Nature of Prepaid: A Bright Spot in a Down Economy

Table of Contents

1. INTRODUCTION

2. THE RECESSION' S IMPACT ON PAYMENTS

• The Recession' s Impact on Credit and Debit Growth Rates
• The Recession' s Impact by Merchant Category Codes

3. THE RESILIENT NATURE OF PREPAID

• Open Loop Travel
• Reloadable Open Money and Financial Services
• Open Gift Cards
• Remittance Cards / P2P
• Business Travel Open and Closed
• Events and Meetings Open and Closed
• Employee and Partner Incentives Open and Closed
• Consumer Incentives Open and Closed
• Relocation Cards Open and Closed
• Campus Cards Open and Closed
• Closed Loop Digital Media
• Closed Loop Net Phone
• Closed Loop Games & Ring Tones
• Closed Loop In-Store Gift Cards -- Merchant Gift Down But Not Out!
• Closed Loop Distributed In-Store Gift Cards
• Closed Loop Social Security
• Closed Loop Food Stamps and WIC
• TANF Open and Closed
• Open Loop Court Ordered Payment
• Closed Loop Prisons
• Closed Loop Transit (Tolls and Light Rail)
• Open Loop State Unemployment
• Open Loop Insurance
• Open Loop Payroll
• Benefits Open and Closed
• Open Loop FSA/HSA Tax Deferred Programs
• Closed Loop Petroleum
• Purchasing Open and Closed
• Closed Loop Utilities
• Closed Loop Prepaid Mobile
• Closed Loop Prepaid Long Distance
• Closed Loop Prepaid Home Dial Tone
• Closed Loop Prepaid Internet Dial Up

4. THE RECESSION' S IMPACT ON PREPAID MALLS

5. CONCLUSION

List of Exhibits

• FIGURE 1: MERCATOR ADVISORY GROUP RESEARCHING ALL ASPECTS OF PREPAID CHANNEL DYNAMICS
• FIGURE 2: EVALUATING THE IMPACT OF RECESSION ON EACH PREPAID SEGMENT (GOOD/BAD/NEUTRAL)
• FIGURE 3: TRACKING THE RECESSION' S IMPACT ON U.S. GDP
• FIGURE 4: TRACKING VISA QUARTERLY PAYMENT TRANSACTION LEVELS
• FIGURE 5: TRACKING VISA QUARTERLY PAYMENT DOLLAR VOLUME LEVELS
• FIGURE 6: VISA AVERAGE TICKET VALUES HAVE STARTED TO DECLINE
• FIGURE 7: FIRST DATA SPENDTRENDTM DATA SHOWS IMPACT OF RECESSION DIFFERS BY STORE CATEGORY