STORED VALUE: TRANSFORMING THE PAYMENTS INDUSTRY

Stored value cards are forever altering the payments industry.  That transformation is occurring faster and to a greater degree than credit cards changed the industry over 20 years ago.  Twenty years ago credit was an essential requirement for a payment card.  Merchants needed to be assured that they would be paid for their goods and services, if they accepted a credit card.  Banks, credit reporting agencies, and bankcard associations provided this assurance by erecting an infrastructure that stood behind credit cards.

Today, very low cost communications networks have enabled consumers and merchants to enjoy this convenience without the credit, since transactions can be executed in real time.  Because consumers are compensating merchants with their own money, not the banks’ money, debit card transactions are inherently less expensive than credit card transactions.  

Consumers and merchants are just starting to enjoy these cost savings.  Moreover, since no credit is required, stored value has the potential to include 50 million adults who have been excluded from the e-commerce revolution because they do not have access to credit or banking facilities.  The implications reverberate across industry segments.  Estimates suggest stored value transactions could exceed $2 trillion in just a few years.  A $2 trillion opportunity… but also a huge challenge as existing players struggle to shift from one mode of transaction to another.

Nobody studies the emerging stored value market more consistently or passionately than The PELORUS Group.  For three decades we’ve been a leader in identifying, analyzing and projecting forward where the different prepaid markets are headed, as well as what the ramifications to industry participants will be.  We hold no punches.  Our thought-provoking assessments are hailed as cogent exercises in realistic market valuations. Organizations around the world tap into our prepaid expertise. “Stored Value: Transforming The Payments Industry” is an exclusive report, offering unprecedented depth and a bold strategic perspective. Its insights and recommendations are the result of years of hands-on research into the rapidly changing credit/debit card landscape. The latest entry in a series of landmark prepaid studies from The PELORUS Group, “Stored Value: Transforming The Payments Industry” may very well be the most provocative such study to date. 

All market forecasts are through the year 2008. 
Price $3,995.00 US
Publication Date: July 2004

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