Abstract
Overview
Introduction
The Australian card market is becoming increasingly competitive with new
entrants appearing regularly. Prepaid cards are a new card-type that is
expected to further increase competitive pressures. These cards will help
issuers maintain an edge over their current competitors.
Scope
- This briefing covers prepaid cards in the financial sector in Australia.
Prepaid gift cards in the retail sector are not included.
- It includes extensive information on the different types of prepaid cards
in circulation and analyses their strengths and weaknesses.
- The briefing is based on in depth interviews from prepaid card issuers and
extensive secondary research.
Report Highlights
Branded prepaid cards are relatively widely spread in the US although the
concept is only just starting to spread to elsewhere in the world. Among the
major European countries, Italy and Spain seem to have taken an interest in
prepaid products. In Australia, prepaid cards barely exist although retail
gift cards have expanded recently.
There are two consumer markets that are likely to be the prepaid card battle
group; teenagers and the corporate and government client. Given that more than
one current player is investigating both these markets, more prepaid card
players are expected to enter the segment in the near future.
An important issue that players need to address in order to increase take-up
is the high price involved with prepaid cards. Players need to address each
niche separately and consider whether the targeted segment can bear the
charges involved. For instance, fees on teen pre-paid cards should be
minimized given that teens have a limited budget.
Reasons to Purchase
- It provides you with a thorough understanding of the prepaid card market
and discusses where the opportunities lie.
- The expert opinion of Datamonitor's Cards Team on the future of each
prepaid product type is a definite guide for building up your strategies.
- The profiles of prepaid players covered in the briefing provide you with
valuable information on winning strategies.
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