53% of 2018 Shipments Will Be Smart Card Enabled
Government and enterprise adoption of prepaid cards will result in cumulative shipments amounting to 3.6 billion between 2013 and 2018, recent statistics indicate.
According to a report dubbed “Prepaid Cards: Open & Closed Loop Solutions for Government, Retail, Corporate & the Unbanked”, released by ABI Research, 53 percent of 2018 shipments will be smart card enabled, up from 24 percent in 2013. The same source unveils that the growth is driven by an increasing move to open loop adoption, set to jump by 64 percent over the same time frame.
Research also points out that international networks are actively promoting prepaid as a means of accessing markets and increasing transaction volumes in areas which have previously remained out of reach. These markets include campus cards and government issued prepaid cards for welfare and social applications. The additional security delivered through smart cards is appealing to government and enterprise entities, providing a platform to reduce fraud, bring digital payments to those that previously remained out of reach and gain further control over spending.