|
|
|
|
PELORUS:
Stored Value Markets to Surge Pass $650 Billion by 2010
February 01, 2006 10:55 AM
RARITAN, N.J.--(BUSINESS WIRE)--Feb. 1, 2006--According to a report
just released by The
PELORUS Group, the stored value marketplace will grow from $216 billion
in 2005 to more than
$650 billion by 2010. This surgent is being fueled by the fact that
prepaid debit cards, which
started out being sold to un-banked or under-banked people as a way of
giving them access to
electronic payments, are now being adopted by corporations and
governments to lower the costs
of, and increase the accountability for, disbursements. In some cases,
prepaid debit cards can
reduce disbursements costs by 75% or more.
Entitled "Stored Value: New Markets, New Growth", the report indicates
that in spite of this
growth, the evolution of the payments process has just begun. Rapid
advances in information
technology and wireless communications are enabling innovators to
change the way individuals
purchase. These changes will transform financial institutions in ways
that have not occurred since
banks were first established. The report further suggests that the
relationship between banks,
merchants, and individuals will be irrevocably altered over the next
few years.
Tom Miezejeski, Vice President with The PELORUS Group and author of the
study notes, "A
recent driver prodding virtually all forms of stored value has been an
effort to convert paper-based
transactions into electronic transactions. Thus, gift certificates have
been converted to gift cards,
tickets have been converted to transit cards, cash and check payments
have been converted to
credit and debit cards payments."
Miezejeski adds, "In 2005, more than two thirds of all ATMs were
located in sites other than
banks. With a prepaid debit card in the form of a payroll card or a
flexible spending account card,
a consumer can now in fact bypass the bank entirely. Some banks, most
likely community banks,
will lose demand deposits to larger national banks. Furthermore, local
banks will see retailers
taking over other retail banking functions such as providing ATMs and
selling money orders.
These trends have significant implications for retailer and banks that
extend far beyond the
associated revenue potential."
|
|
|
Overview