The turnover in the prepaid cards market is expected to exceed $5.5 trillion dollars by 2028. As international communications specialists, Albion Languages recognise the integral role localised communication can play in the growth of such global financial services. In this blog, we examine the prepaid cards market, where the cards started and why they have achieved such success.
What is a prepaid card?
A prepaid card acts as a cash substitute. Users can only spend the balance on the card, thus making it impossible to fall into debt. However, unlike cash, these cards offer users an extra security layer, which makes them more secure. Prepaid card providers in the UK include the likes of Cashplus, GoHenry, thinkmoney, and Revolut.
Funds can be added to a prepaid card via a high street bank, online, through an ATM, at a retailer, or – for users in the UK – through a PayPoint or Post Office. The ease of adding funds makes them especially convenient for foreign travel, as users can not only avoid the risks associated with carrying large amounts of currency, but they can also lock in exchange rates before they fly, thus avoiding the risk of fluctuating exchange fees on each transaction.
Benefits of a prepaid card
A prepaid card offers the convenience of credit and debit cards without the commitment of opening an account with a financial institution.
In the current cost of living crisis, the cards are seeing a surge in popularity, with no risk of debt or overdraft fees. In this way, users don’t need to worry about overspending in essence and can turn these cards into a valuable budgeting tool.
They are easy to set up, which is why companies such as GoHenry have styled themselves as a service aimed at the youth market. The company’s business model has allowed them to build a network of 1.2 million parents and children. The brand’s ethos is to encourage youngsters to learn the vital art of managing their money. The company has enjoyed runaway success so far, doubling its customer base annually over the past six years.
Market growth, in the UK and beyond
Cashplus claims to have launched the UK’s first prepaid card in September 2005. Competing banking services, including Monzo, Revolut, and Monese, followed in 2015. In 2020, MobiKwik, an Indian digital payment company, became the first non-bank institution in India to issue prepaid cards, in collaboration with American Express, which emphasised the global appeal of the service.
The global prepaid card market is predicted to exceed $5.5 trillion dollars in turnover by 2028, or $4 trillion dollar in growth since 2019. Without the need for bricks and mortar buildings, these online prepaid cards can become widespread quickly and achieve worldwide market appeal.
With a firm hold in the U.S. market already, GoHenry has taken an entirely different approach in targeting European markets. The company opted to purchase Pixpay – an established brand with traction in the market – thus avoiding the costs associated with hiring, localisation and launch campaigns. Pixpay’s leadership teams and headquarters will remain as they are.
Localisation in the financial services market
By purchasing Pixpay, GoHenry demonstrated that as a company they understood the significant time and financial input required to build a brand in a new market. Using a localised business model to attract new customers and provide personalised customer service can be costly, especially in the financial sector where security is paramount. This makes selecting the right service provider with the best balance of quality, speed and sector know-how of key importance.
At Albion Languages, we recognise the integral role communication plays in the growth of a global financial service. Providing translation into 40 working languages, a customised approach, and rapid turnaround times, we can offer invaluable insights and expertise to help your business take the exciting step out onto the Global stage. To speak to a member of our team, get in touch today.