Global. The trend for Prepaid Cards began in the USA. Back in 1996 the market was worth $4 billion, today it has annual sales in excess of $236 billion1. The UK is leading the way in Europe, though many other European countries are following suit and Gift Cards can be seen on the shelves of many European retailers. It is estimated that there will be over $600 billion in global prepaid spend by 20102. European. Current estimates indicate there are 40-60 million Prepaid Cards in operation3, over 90% of which are Closed Loop4. However, the European Prepaid Card industry is still in its infancy. Growth rates are set to continue over the next five years, with an estimated turnover of €135 billion by 20155. More specifically, the Gift Card market will be worth €23bn by 20156.

According to the UK Gift Card and Voucher Association, £3.5 billion of worth of gift vouchers and cards are sold each year in the UK⁹. This is a mixture of cards and vouchers sold as gifts and also business-to-business use like staff incentives and customer motivation.

Opening up new opportunities.
Prepaid Cards are opening up new opportunities for both retailers and non-retailers, and growth in the market is forecast to be as high as 20% year-on-year as more as more Gift Cards are launched¹⁰. It is predicted that the UK will become Europe’s largest single market for Prepaid Card spending, reaching £16.5 billion by 2010¹¹. It is also estimated that 7% of cards in circulation  and 3.5% of payment value will be prepaid¹².

Reference:
1.  Mercator Advisory Group
2.  PSE Consulting
3.  UK Gift Card and  Voucher Association
4.  Global Prepaid Exchange
5.  PSE Consulting
6.  PSE Consulting
7.  UK Gift Card and  Voucher Association
8.  UK Gift Card and  Voucher Association
9.  UK Gift Card and  Voucher Association
10.  UK Gift Card and  Voucher Association
11.  PSE Consulting
12. PSE Consulting