Research Shows Closed-Loop Prepaid Program Managers Drive Volume and Program Profitability
Prepaid card program managers of Mercator have made distribution their top priority. Mercator Advisory Group’s Consumer Prepaid Distribution Strategies examines the methods available to prepaid card program managers as they seek out new outlets and markets
The report focuses on how closed-loop gift card business approaches distribution, given that retailers have led the way with in-store and online distribution channels. Understanding these channels will provide clues for prepaid card managers in all segments to find new outlets for their cards.
With this report, they can look forward to facilitate the dispersal scheme that is being utilized for open-loop cards. The dissemination technique includes business and technological developments while the report covers the present state of the digital card market.
“Due to thin margins, prepaid programs depend on volume for profitability. So, getting cards into many hands is critical to success.” - Ben Jackson Senior Analyst Mercator Advisory Group Prepaid Advisory Service
Program managers, whether handling open-loop or closed-loop cards, have a variety of distribution options. Understanding those options requires a grasp of both business and technology considerations, “he added.
The prepaid industry cannot afford to ignore any distribution channel. Among the main components of the report are the eight main avenues for allocation. These have remained significant despite the changes mandated by the government in the rules implementing the CARD Act of 2009.
It also features the findings from Mercator’s Customer Monitor Survey regarding card buyer’s channel preferences, new ways technology advances offer to sell cards to customers and the trends of retailer and consumer adoption. As well as the business and technological considerations distribution plans need to factor into the mix.
Visit Mercator online at www.mercatoradvisorygroup.com.
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