[Report] STORED VALUE: OPEN LOOP MARKETS

Abstract

Open loop stored value products have enjoyed rapid growth in recent years in the form of prepaid debit cards and gift cards. These products are tools that have allowed innovators to meet ongoing market needs for enhancements in the way people pay for goods and services. Indeed, stored value has the potential to include tens of millions of adults who have been excluded from the e-commerce revolution because they do not have access to credit or banking facilities, but who have $1.1 trillion of income. The implications reverberate across industry segments. Some estimates suggest open loop stored value transactions could exceed $1 trillion in not so many years. A $1 trillion opportunity... how soon will that be... what are the challenges and opportunities as existing players struggle to shift from one mode of payment transaction to another?

The evolution of the payment process is very much continuing. Rapid advances in information technology and mobile communications will continue to enable innovators to make changes to the way individuals purchase and pay for goods and services. Open loop stored value solutions will play a key role in transforming how financial institutions interact with their customers. The relationship between banks, merchants, and individuals is dynamic, and will continue to evolve and change, sometimes fundamentally, over the next five years and beyond. The role of open loop stored value cards in facilitating emerging customer payment needs will be surprising to many industry observers.

The focus of this report is open loop stored value solutions. It provides an overview of the U.S. open loop stored value market and delves into applications, history and technology, major players, and market projections. Nobody studies the emerging stored value market more consistently or passionately than The PELORUS Group. For three decades we' ve been a leader in identifying, analyzing and projecting forward where the different prepaid markets are headed, as well as what the ramifications to industry participants will be. We pull no punches. Our thought-provoking assessments are hailed as cogent exercises in realistic market evaluation. Organizations around the world tap into our prepaid expertise. “Stored Value: Open Loop Markets” is an exclusive report, offering unprecedented depth and a bold strategic perspective. Its insights and recommendations build upon years of hands-on research into the rapidly changing credit/debit card landscape. The latest entry in a series of landmark prepaid studies from The PELORUS Group, “Stored Value: Open Loop Markets” may very well be the most provocative such study to date.