4th Annual Network Branded Prepaid Market Assessment: Measuring the Phenomenal Growth of the Open Prepaid Industry

1. INTRODUCTION

• TOTAL, NETWORK BRANDED, AND CLOSED LOOP PREPAID MARKET OVERVIEW
• NOW 33 SEGMENTS

2. CASH ACCESS CATEGORY

• TRAVEL CARD SEGMENT
• MONEY & FINANCIAL SERVICES
  • Can Credit Instruments Enter the Prepaid Market?
  • Credit Card Interchange For Prepaid
  • A Skirmish Over Shared Consumers
• NETWORK BRANDED GIFT CARDS
  • Gift Card Volume More Evenly Distributed During the Year
  • Unauthorized Transactions & Fraud Erode Profitability
• REMITTANCE & P2P SEGMENT

3. BUSINESS TIME & EXPENSE CATEGORY

• BUSINESS TRAVEL
• EVENTS & MEETINGS SEGMENT
• EMPLOYEE & PARTNER INCENTIVES SEGMENT
• CONSUMER INCENTIVES SEGMENT
  • Common Issues With Consumer Incentives and Employee & Partner Incentives
• RELOCATION CARD SEGMENT

4. CAMPUS CATEGORY / SEGMENT

5. STORE GIFT CARDS CATEGORY (OPEN SPENDING BEGAN IN 2005)

6. GOVERNMENT CATEGORY

• TANF
• COURT ORDERED PAYMENTS SEGMENT
• TRANSIT SEGMENT
• STATE UNEMPLOYMENT SEGMENT

7. INSURANCE / EMERGENCY DISBURSEMENT CATEGORY

8. PAYROLL & BENEFITS CATEGORY

• PAYROLL
• BENEFITS
• FSA/HSA

9. PURCHASING CATEGORY

10. RESTRICTED ACCEPTANCE NETWORKS ENHANCES PREPAID VALUE

11. CONCLUSION

• FIGURE 1: PERFORMANCE OF OPEN VS. CLOSED MARKET SEGMENTS
• FIGURE 2: PERFORMANCE OF NETWORK BRANDED VS. CLOSED MARKET SEGMENTS
• FIGURE 3: US OPEN PREPAID MARKET SIZE & GROWTH IN US DOLLARS (BILLIONS)
• FIGURE 4: 12 PREPAID MARKET CATEGORIES AND 33 PREPAID MARKET SEGMENTS
• FIGURE 5: TOTAL DOLLARS LOADED ON ALL FOUR CASH ACCESS SEGMENTS
• FIGURE 6: DOLLARS LOADED ON NETWORK BRANDED CARDS - BUSINESS T&E SEGMENTS
• FIGURE 7: COMPARING BUSINESS SPEND ON OPEN VS. CLOSED INCENTIVE CARDS
• FIGURE 8: CAMPUS LOADING ON NETWORK BRANDED CARD SOLUTIONS
• FIGURE 9: IN STORE CATEGORY LOADING ON NETWORK BRANDED CARD SOLUTIONS
• FIGURE 10: GOVERNMENT LOADING ON OPEN CARD SOLUTIONS
• FIGURE 11: TOTAL SPENDING IN INSURANCE SEGMENT
• FIGURE 12: TOTAL SPENDING IN PAYROLL & BENEFITS SEGMENT
• FIGURE 13: PREDICTED HSA ACCOUNTS WITH PREPAID CARDS DEPLOYED
• FIGURE 14: TOTAL SPENDING IN PURCHASING SEGMENT