AML CHALLENGES
Editor’s note:
This is part one of a two part series.
W
hether used to provide costeffective substitutes to traditional paper payments, such
as government benefits, rebates and flexible
savings accounts, or to provide a financial
product to the under-banked or un-banked
community, the prepaid card industry is
rapidly growing both in the United States
and internationally. According to research
commissioned by MasterCard, Inc. and
conducted by the Boston Consulting Group
(BCG), the total value of the branded prepaid
card opportunity in the U.S. is expected to
surpass $440 billion by 2017, nearly quadrupling its estimated value of $120.2 billion in
2009. The study also shows the U.S. market
will remain the largest branded prepaid
segment in the world, holding 53 percent
of the overall market share. India, the UK,
Mexico, Italy, the Middle East and Brazil
combined, will hold approximately 25 percent
of the branded prepaid market by 2017. Brazil
alone is expected to expand from $1.7 billion
in 2009 to more than $17 billion in 2017.1
While most may be familiar with the prepaid
card products that exist including gift, payroll
and general purpose reloadable cards, do
you have a good understanding what