Global prepaid travel cards to reach US$ 96.3 billion by 2021; focus on building loyalty and engagement across travel value chain

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Prepaid cards have been effectively utilized to launch innovative and engaging loyalty programs by retail industry. However, adoption by other industries, especially travel is yet to realize its true potential. It is expected that growth and usage of prepaid travel cards will continue to rise with increasing value propositions and industry contribution. With new offers and services being added to prepaid travel cards, it will continue to drive customer engagement for airline industry in coming years and more players are likely to incorporate this service increasing its demand in following years.

Prepaid travel cards which not only provide better value propositions for customer engagement, but also is the fastest growing segments in the world. Primarily, focus so far has been on offering multi-currency support and security. However, according to PayNXT360’s global survey this is changing and focus is now on creating a value proposition by collaborating with all players in the value chain.

Prepaid travel cards can effectively complement co-branded credit cards and credit cards. Prepaid travel card holders receive information promotions and offers related to their travel pattern which helps in building up better customer engagement. This also aids in reaching out to a wider customer base. It is being seen now as an alternate source of revenue generation, medium for cross selling other services and help in standing out in competition. Many airline companies have started integrating their frequent flier membership programs with prepaid travel cards for creating next generation travel programs.

Global travel forex prepaid card market in terms of transaction value is expected to record a CAGR of 17.6% during 2017-2021 to reach US$ 96,376 million by 2021, increasing from US$ 50,430 million in 2017. Over the last five years the sector has recorded a CAGR of 23.2%.

To know more and gain deeper understanding of how prepaid card industry is shaping up globally, click here.