Prepaid and Gift Cards in the U.S., 3rd Edition
Prepaid card usage trends and debit-driven regulatory change suggest that the prepaid industry has the wind at its back. Indeed, Packaged Facts estimates that prepaid card payment volume will rise 22.4% in 2012 to $247.5 billion, up from $202.2 billion in 2011, on the strength of almost 10 billion transactions.
However, continued growth will meet with a combination of challenges and opportunities: How will the industry approach consumers’ banking dissatisfaction & distrust issues? Can it strike a balance between checking account profits and emerging migration to prepaid programs? How can it increase prepaid cardholder retention, navigate lingering overdraft issues, harness card platforms to best meet the needs of the unbanked and underbanked, and leverage younger consumers’ financial positions while building relationships with them? In what ways will it seek to increase product transparency while reducing fees and simplifying fee structures?
Packaged Facts’ report on Prepaid and Gift Cards in the U.S. takes up these issues and many more, covering trends related to general purpose reloadable prepaid cards, government benefit cards, payroll cards, and gift cards, with a focus on general purpose reloadable prepaid cards. The report includes:
However, continued growth will meet with a combination of challenges and opportunities: How will the industry approach consumers’ banking dissatisfaction & distrust issues? Can it strike a balance between checking account profits and emerging migration to prepaid programs? How can it increase prepaid cardholder retention, navigate lingering overdraft issues, harness card platforms to best meet the needs of the unbanked and underbanked, and leverage younger consumers’ financial positions while building relationships with them? In what ways will it seek to increase product transparency while reducing fees and simplifying fee structures?
Packaged Facts’ report on Prepaid and Gift Cards in the U.S. takes up these issues and many more, covering trends related to general purpose reloadable prepaid cards, government benefit cards, payroll cards, and gift cards, with a focus on general purpose reloadable prepaid cards. The report includes:
- An overview of recent regulations reshaping not only the prepaid debit card landscape but also broader consumer banking revenue generation strategies
- Prepaid card brand analysis, including Chase Liquid, American Express Prepaid, the Walmart MoneyCard, RushCard, H&R Block Emerald Card, and Direct Express
- Prepaid debit card usage and growth within the context of the consumer payments universe
- Prepaid card and gift card usage demographic trends
- The degree to which consumers use their prepaid cards and how prepaid engagement relates to the use of other payment cards. We also assess relationships between consumer banking product ownership and payment card use, including prepaid card use.
- Prepaid debit card users’ usage motivations (including convenience, relationship to cash, creditworthiness, and spending control); consumer financial self-perceptions; and the relationship between those self-perceptions and payment card use and usage mix.
- Gift card purchasing trends and spending demographic trends
- Prepaid- and broader debit-driven performance and strategies at card associations MasterCard and Visa; prepaid card issuers and program managers American Express, Green Dot and NetSpend; and prepaid distribution network Blackhawk.
CHAPTER 1 EXECUTIVE SUMMARY
Scope and Methodology
Scope of Report
Report Methodology
Market size and forecast
Consumer survey methodology
Report Summary
Prepaid card payment and transaction volume: market size & forecast
Prepaid complementing overall debit transaction and volume growth
Prepaid cards for unbanked and underbanked and beyond
Government prepaid card volume and value
Gift Cards
Positive holiday spending trend
Purchase spend trends
Regulatory Analysis and Impact
Good news
But tighter regulation still strongly advocated
“The very name ‘prepaid card’ should mean what it says.”
Durbin Amendment and CARD Act
Exceptions related to prepaid cards and gift cards
Debit loss is prepaid gain
Reg E dormancy, inactivity and service fees
Consumer Financial Protection Bureau seeks new standards
Prepaid Challenges and Opportunities
Banking dissatisfaction & distrust
But frustration cuts both ways
Banking distrust among Gen Y, lower-income adults and Hispanics grows
Banking institutions shedding low-profit accounts: prepaid in the wings
Significant public policy issues in play?
Case in Point: JPMorgan Chase
Cross-selling the name of the game
If you’re not going to generate revenue for us, don’t expect a free ride
We believe this sets the stage for Chase Liquid prepaid
Increasing retention: churn/abandonment rates continue to challenge industry
Direct deposit as retention driver
Unbanked and underbanked opportunity
Reaching youth
Fee reduction and simplification
Cost analysis: prepaid really a bargain?
Fee reductions on the way
Overdraft control
Green Dot maintenance fees comprise 90% of overdrawn balances
Disclosure issues
Is new fee box the answer?
Prepaid Card Brand Analysis
American Express Prepaid Card
Fee analysis
Green Dot Prepaid Cards
Fee analysis
Direct Express
A model card?
Prepaid Cards in Context: The Consumer Banking & Payments Universe
Credit, Debit, Prepaid & Gift Card Usage Trends: 2010-2012
Prepaid Cards & the Banking Relationship
Prepaid Cardholder Financial Attitudes & Usage Rationales
Gift Card Usage & Spending Trends
Company Prepaid Strategies
CHAPTER 2 INTRODUCTION AND OVERVIEW
Introduction
Origins
Segmentation
Closed-loop gift cards
Open-loop gift cards
Closed-loop prepaid cards
Open-loop general purpose prepaid debit cards
Open-loop gift cards
These cards are funded by Payroll cards
Fees
Advantages
Drawbacks
Protection
Other terms
Demand deposit account (DDA)
Card issuer
Electronic Funds Transfer (EFT)
Merchant acquirer
Interchange fee
Signature-based (offline) transactions
PIN-based (online) transactions
Competitive landscape
Competitive factors
CHAPTER 3 MARKET SIZE AND FORECAST
Introduction
Prepaid card payment and transaction volume: market size & forecast
Table 3-1 U.S. Prepaid Card Market Size and Forecast: 2006-2014
Payment volume growth
Graph 3-1 U.S. Prepaid Card Payment Volume: Market Size and Forecast: 2009-2015
Transaction volume growth
Graph 3-2 U.S. Prepaid Card Transaction Volume: Market Size and Forecast: 2009-2015
2010 Federal Reserve Payments Study
Prepaid complementing overall debit transaction and volume growth
Many arguments in favor of continued debit growth
$14 billion in interchange revenue still not small change
But consumers may migrate to alternative payments if debit card cost goes up
Prepaid cards for unbanked and underbanked
Government Prepaid Card Segment
Electronic benefit transfer (EBT)
Cardholder fee prohibitions
Federal programs
Electronic mandate to phasing paper checks—and juice up Direct Express
State Programs
Prepaid debit significant to state programs
California rollout
Government Prepaid Card Volume, Transaction & Fee Analysis
Government prepaid card volume and value
Table 3-2 Volume and Value of Government Prepaid Card Purchase Transactions, 2010
Government prepaid card interchange analysis
Table 3-3 Government Prepaid Card Interchange Fee Revenue Received By Issuers, 2010
Government prepaid card cardholder fees
Average 2010 cardholder fee: $9.69 per card
Table 3-4 Government Prepaid Card Fee Analysis, 2010
Gift Cards
While the hype has moved elsewhere, gift cards are doing just fine
Table 3-5 Gift Card Purchase Intention, Card Number and Value: 2007-2011
Gift card purchase share segmentation
Table 3-6 U.S. Adult Gift Card Purchases: Dollar Value by Segment, 2010-2012
Purchase share leadership goes to . . .
Table 3-7 U.S. Adult Gift Card Purchases: Dollar Value Share by Segment, 2010-2012
CHAPTER 4 REGULATORY ANALYSIS AND IMPACT
Introduction
More regulatory protections, please
Taking the debate to the U.S. Senate
Good news
But tighter regulation still strongly advocated
CARD Act
The Durbin Amendment & debit interchange
Final rule sets interchange rate
Issuer exception
Prepaid exception
CARD Act exclusion: prepaid card vs. gift card
Network exclusivity prohibition and routing provisions
No prepaid exception
Woe to debit interchange!
Debit interchange loss analysis
The American Express exception
Debit loss is prepaid gain
Regulation E
What is it?
Consumer overdraft protection
Federal benefits electronic funds transfer
Dormancy, inactivity and service fees
Consumer Financial Protection Bureau seeks new standards
Reg E in play
Bureau of Consumer Financial Protection
What is it and what is it supposed to do?
What is the scope of its authority?
Broad rule-making authority
Broad enforcement authority
Prepaid review underway
Unauthorized transactions and limited liability protection
Overdraft practices, saving account usage and credit repair
Prepaid Access Final Rule
CHAPTER 5 PREPAID CHALLENGES AND OPPORTUNITIES
Introduction
Banking dissatisfaction & distrust
Consumer banking frustration
Bank Transfer Day
But frustration cuts both ways
Customer service complaints
Banking distrust among Gen Y, lower-income adults and Hispanics grows
Table 5-1 Consumer Trust in Giving Money to Banks among Younger Adults, Low-Income Adults and Hispanics, 2008-2011
Banking institutions shedding low-profit accounts: prepaid in the wings
Significant public policy issues in play?
Case in Point: JPMorgan Chase
History of success with government prepaid
Consumer banking powerhouse
Growing branches, online, mobile and next-generation ATMs
Card and payment processing growth
New upscale credit cards, new partners
Consumer banking regulation response to drive prepaid growth
Cross-selling the name of the game
If you’re not going to generate revenue for us, don’t expect a free ride
We believe this sets the stage for Chase Liquid prepaid
Table 5-2 JPMorgan Chase: Banking Services That Do Not Carry an “Explicit” Charge, 2012
Changing banking economics necessitate a shift in strategy
Table 5-3 JPMorgan Chase Consumer & Business Banking Revenue Growth Trends, 2005-2011
Proportionally less revenue generated by those with less at the bank
Table 5-4 Percent reduction in per HH variable contribution by segment, 2011
Threshold for profitability: $100,000 in deposits & investments?
Table 5-5 JPMorgan Chase Post-Regulation Revenue Composition by Wealth Segment
More wealth, more revenue
Table 5-6 JPMorgan Chase Distribution of households by wealth segment
Because the relationship is deeper
Table 5-7 JPMorgan Chase Products per household by wealth segment (industry)
Migration underway at other major banks
Increasing retention
High churn/abandonment rates continue to challenge industry
Direct deposit as retention driver
Supported by mobile technology
Unbanked and underbanked opportunity
Who are the unbanked?
Who are the underbanked?
Unbanked and underbanked prepaid card use
Table 5-8 Unbanked Households’ Use of General Spending Cards and Payroll Cards
Table 5-9 Underbanked Households’ Use of General Spending Cards and Payroll Cards
Reaching youth
CARD Act forecloses campus credit card marketing
Campus opportunity
A slew of heavy-hitting prepaid entrants
Campus ID cards
U.S. Bancorp’s Wolfpack One Card
Fee-friendly
Fee reduction and simplification
Random pricing
Cost analysis: prepaid really a bargain?
Fee reductions on the way
Overdraft control
An overdraft dilemma?
Green Dot maintenance fees comprise 90% of overdrawn balances
Late posting also results in overdrafts
Increasing transparency and education
Disclosure issues
Most consumers found to be clueless about prepaid card fees
And they take issues with prepaid card company disclosure obligations
Is new fee box the answer?
Simple, clear, and straightforward language
Format and visual design
Tradeoff between simplicity and comprehensiveness
Pure disclosure versus encouraging financial capability
Clear and consistent placement
CHAPTER 6 PREPAID CARD BRAND ANALYSIS
Introduction
General Purpose Reloadable Prepaid Cards
American Express Prepaid Card
Research and promotions
Reloadable
Benefits
Fee analysis
Table 6-1 American Express Prepaid Card Fee Structure, 2012
American Express for Target Card
American Express PASS Card
American Express Campus Edition Prepaid Card
Analysis
Chase Liquid
Nuts and bolts
Fee analysis
Security
Table 6-2 Chase Liquid Fee Comparison, 2012
Green Dot Prepaid Cards
Summary analysis
Nuts and bolts
Green Dot VIP provides fee reduction options
Reload options
Fee analysis
Table 6-3 Green Dot Prepaid Debit Card Fee Analysis, 2012
AARP Foundation Prepaid MasterCard
RushCard
Marketing
Differentiating features
Promotions
Reload options
Security
Technology
Competition
Fee analysis: choose your plan
Table 6-4 RushCard Fee Analysis, 2012
Walmart Money Card
Easy to get
Easy to use
Fee analysis
Table 6-5 Walmart MoneyCard Fee Analysis, 2012
Multiple reloading options
Security
Loopholes
Differentiating features
General Purpose Reloadable Prepaid Cards: Tax Preparation
H&R Block Emerald Card
Reload options
Security
Notable features and benefits
Limitations
Fee analysis
Table 9-1 H&R Block Prepaid Debit Card Fee Analysis, 2012
ATM fees
Table 6-6 H&R Block Prepaid Debit Card Fee Analysis, 2012
Intuit Refund Card
Add money
Rewards
Fee analysis
Table 6-7 Intuit Refund Card Prepaid Visa Debit Card Fee Analysis, 2012
Intuit GoPayment Card
Government Prepaid Cards
Direct Express
A model card?
Table 6-8 Direct Express Prepaid Debit Card Fee Analysis, 2012
MyAccountCard pilot
Table 6-9 MyAccountCard Visa Prepaid Debit Card Fee Analysis, 2012
Security
Reload options
Withdrawal limitations
Concerns
Sad ending
CHAPTER 7 PREPAID CARDS IN CONTEXT: THE CONSUMER BANKING & PAYMENTS UNIVERSE
Introduction and summary analysis
The Consumer Banking Relationship
Checking/savings account remain consumer banking cornerstone
Alternative payment accounts
Share of unbanked
Technology-based access
Table 7-1 Current Ownership of Deposit Accounts and Account Access Technologies, 2008-2009
Branch banking most common form of bank account access
Table 7-2 Incidence of Bank Account Access and Other Practices, Consumers vs. Adopters, 2009
Payment Instrument Analysis
Card and electronic payment adoption declines
Penetration gap between debit and credit widens
Prepaid cards used by one-third
Contactless payments
Table 7-3 Current Adoption of Payment Instruments, by Instrument Features, 2008-2009
What’s in your wallet?
Wallet stays the same size, but cards stay in wallet longer
Debit wallet footprint underscores importance as relationship touch point
More than two prepaid cards in wallet
Table 7-4 Number of Adopted Bank Accounts and Payment Cards, 2008-2009
Paper or plastic?
Paper instrument usage remains universal
Annual prepaid usage into double digits
Table 7-5 Incidence Use of Payment Instruments in a Typical Month, by Type of Instrument, 2008-2009
Card transaction share falls below 50%
Cash and check gain share!
Uptick in use of cash continues past the financial crisis
Prepaid card transactions a drop in the pool
And dwarfed by debit
Table 7-6 Usage Frequency and Share of Payment Instruments in a Typical Month, by Type of Instrument, 2008-2009
General purpose prepaid card penetration = specific purpose card penetration
Better to receive than to buy for self?
Table 7-7 Prepaid Card Usage & Cards per User, by Instrument Features, 2008-2009
Prepaid reload activity
Table 7-8 Prepaid Card Reloadings, 2008-2009
Consumer’s comparative perceptions of prepaid card cost
Prepaid cost improves but still lags other payment instruments
Check, cash and debit far more likely to be viewed as low cost
Table 7-9 Assessments of Payment Instruments, by Degree of Cost, 2008-2009
CHAPTER 8 CREDIT, DEBIT, PREPAID & GIFT CARD USAGE TRENDS: 2010-2012
Introduction and summary analysis
Credit, Debit, Prepaid & Gift Card Usage Trends
2012 prepaid usage penetration reaches 14%
Visa brand predominates
Gift card penetration stabilizes
Table 8-1 Consumer Payment Card Usage Trending, by Type: 2010-2012
Gender analysis
Prepaid growth driven disproportionately by female adopters
Women also drive gift card purchases
Table 8-2 Payment Card Usage Trending, by Type: Males v. Females, 2010-2012
Age analysis
Prepaid growth trends among 18-24s solid, but lag the average
Gift card usage declines
Table 8-3 Consumer Payment Card Usage Trending among 18-24s, by Type: 2010-2012
Hispanic/Latino Analysis
Hispanic prepaid and gift card uptake analysis
Table 8-4 Consumer Payment Card Usage Trending among Hispanics, by Type: 2010-2012
HH-Income Analysis
Prepaid cards proportionately more relevant to low-income consumers
Gift card penetration trails average
Table 8-5 Payment Card Usage Trending, Low-HH Income Consumers, by Type: 2010-2012
Low/mid-income usage trends
Table 8-6 Payment Card Usage Trending, Low/Mid-HH Income Consumers, by Type: 2010-2012
Mid- to high-HH income consumers show preference for AMEX prepaid
Table 8-7 Payment Card Usage Trending, Mid-HH Income Consumers, by Type: 2010-2012
HH income consumers show strong preference for AMEX prepaid
Table 8-8 Payment Card Usage Trending, High-HH Income Consumers, by Type: 2010-2012
CHAPTER 9 PREPAID CARDS & THE BANKING RELATIONSHIP
Introduction
A note on payment card engagement
American Express and Discover credit card engagement matched by prepaid
But a dearth of highly engaged users
Table 9-1 Card Payment Instrument Engagement & High-Frequency Engagement, by Card Type, 2012
Summary analysis: consumer prepaid card engagement
Table 9-2 Prepaid Card Engagement and High Engagement, by Demographic, 2012
Prepaid card penetration dwarfed by debit and credit card penetration
Table 9-3 Prepaid, Debit and Credit Card Usage Penetration, 2012
Validated by proprietary results
Table 9-4 Prepaid Card Users: Payment Card Cross-Usage, 2012
Prepaid cardholders: prepaid, debit & credit use by engagement degree
Prepaid card users tend to use a variety of payment card instruments
High-frequency prepaid card engagement
Table 9-5 Prepaid Card Users: Payment Card Cross-Usage, 2012
Debit cardholders: prepaid, debit & credit use by engagement degree
Debit card users far less apt to use prepaid
Table 9-6 Debit Card Users: Payment Card Cross-Usage, 2012
Debit & credit cardholders: prepaid engagement analysis
Engaged debit and credit card users: prepaid usage patterns
Table 9-7 Card Payment Instrument Users: Prepaid Card Usage and High-Frequency Prepaid Card Use, 2012
Highly engaged debit and credit card users: prepaid usage patterns
Table 9-8 High-Frequency Card Payment Instrument Users: Prepaid Card Usage and High-Frequency Prepaid Card Use, 2012
Prepaid users: cards in wallet
Most prepaid card holders have debit or credit card
Unbanked and uncreditworthy only a sliver of users?
Table 9-9 Debit Card and Credit Card Mix among Prepaid Users, 2012
The consumer banking relationship
Half of us have checking; 20% have no consumer banking relationship
Table 9-10 Consumer Banking and Loan Product Penetration, 2012
Banking relationship not a prepaid card usage driver
Credit card ownership
Checking account holders
Table 9-11 Payment Card Use & Usage Mix: Consumer Banking Product Usage Correlation, 2012
Consumer loan connection to payment card mix
Credit, debit and prepaid use each tied to consumer loan possession
But using prepaid card with another payment card strengthens loan use
Table 9-12 Payment Card Use & Usage Mix: Consumer Loan Product Usage Correlation, 2012
Car title loans and no consumer loan products produce opposite effect
Table 9-13 Payment Card Use & Usage Mix: Consumer Loan Product Usage Correlation, 2012
CHAPTER 10 PREPAID CARDHOLDER FINANCIAL ATTITUDES & USAGE RATIONALES
Introduction
Consumer Financial Attitudes, by Payment Card
Payment card use
Table 10-1 Consumer Financial Attitudes, by Payment Card Usage
Prepaid users: payment card usage mix
Bank distrust and financial insecurity more likely among prepaid-only users
Table 10-2 Prepaid Card Users’ Financial Attitudes, by Payment Card Usage Mix, 2012
Prepaid Card Usage Rationales & Influences
ashless preference and spending control
able 10-3 Prepaid Card Users: Prepaid Usage Rationales, 2012
Age analysis
Table 10-4 Prepaid Card Users: Prepaid Usage Rationales, by Age, 2012
HH income analysis
Table 10-5 Prepaid Card Users: Prepaid Usage Rationales, by HH Income, 2012
Race/ethnicity analysis
Table 10-6 Prepaid Card Users: Prepaid Usage Rationales, by Race/Ethnicity, 2012
Geographic density analysis
Table 10-7 Prepaid Card Users: Prepaid Usage Rationales, by Geographic Density, 2012
Regional analysis
Table 10-8
Prepaid Card Users: Prepaid Usage Rationales, by Region, 2012
Analysis by degree of prepaid card engagement
Table 10-9
Prepaid Card Usage Rationales, Engaged vs. Highly Engaged Prepaid Card Users, 2012
Analysis by prepaid card payment card usage mix
Table 10-10 Prepaid Card Usage Rationales, Engaged Prepaid Card Users v. Prepaid-Only Users, 2012
CHAPTER 11 GIFT CARD USAGE & SPENDING TRENDS
Introduction
Gift card usage and spending trending: summary analysis
Table 11-1 Gift Card Usage Trending, by Retailer Type: 2010-2012
Gift card usage and spending trending: gender analysis
Women more likely to purchase gift cards
Table 11-2 Gift Card Usage, by Retailer Type: Gender Analysis
But men generally spend more for gift cards in certain categories
Table 11-3 Gift Card Spending, by Retailer Type: Gender Analysis
Gift card usage and spending trending: age analysis
Middle age equates to gift card purchase tendencies
Table 11-4 Gift Card Usage, by Retailer Type: Age Analysis
18-24s big bookstore gift card spenders
Table 11-5 Gift Card Spending, by Retailer Type: Age Analysis
Gift card usage and spending trending: race/ethnicity analysis
Table 11-6 Gift Card Usage, by Retailer Type: Race/Ethnicity Analysis
Black and Hispanic consumers tend to spend more on electronics store cards
Table 11-7 Gift Card Spending, by Retailer Type: Race/Ethnicity Analysis
Gift card usage and spending trending: HH income analysis
Gift card use strongly correlates to HH income
Table 11-8 Gift Card Usage, by Retailer Type: HH Income Analysis
Gift card category spend also strongly correlates to HH income
Table 11-9 Gift Card Spending, by Retailer Type: HH Income Analysis
Gift card usage and spending trending: card brand analysis
Non-card branded gift cards garner higher usage share
Table 11-10 Gift Card Usage Trending, by Card Brand: 2010-2012
Visa brand gift cards garner higher spend
Table 11-11 Gift Card Spending, by Card Brand, 2012
CHAPTER 12: COMPANY PREPAID STRATEGIES
Introduction
Card Associations
MasterCard
Overview
Debit trend summary
Q1 2012 marks a new era at MasterCard
And exposure on Visa-branded cards
Process transactions jump
Prepaid programs
Targeted categories
Program management services
Mobile wallets and mobile alliances
Acquisition-based enhancements
Key prepaid relationships and developments
Successful public sector growth
Direct Express Debit MasterCard a huge success
Comerica partnership
Walmart partnership
Western Union relationship
Other retailer relationships
Google Wallet participation
Targeting youth
Multi-currency travel card
MasterCard by the numbers: trending debit metrics & ratios
Quarterly comparisons
Table 12-1 MasterCard U.S. Q1 2010, Q1 2011 and Q1 2012 Debit Card Metrics
Annual trends
Table 12-2
MasterCard U.S. Debit Card Metrics: 2010 v. 2011
Visa
Business summary
Transaction processing services
Core debit processing services
Consumer debit platforms
Exclusivity rule takes its toll
Volume share drop: get used to it
“We are never going to regain all of the market share . . .”
Prepaid programs
Argument for government prepaid
Government prepaid programs
Mobile prepaid a part of V.me digital wallet plan
Vodafone mobile payments agreement
Visa payWave
Visa by the numbers: trending debit metrics & ratios
Q1 2012 tells quite a story
Two-year quarterly trend analysis
Table 12-3 Visa U.S. Q1 2010, Q1 2011 and Q1 2012 Debit Card Metrics
Issuers, Program Managers and Distributors
American Express
Company overview
What Differentiates American Express Now Makes It More of a Target
No debit card?
Two Sides of the Demographic Coin: Premier Rewards Gold and ZYNC Card
Enterprise Growth Group
Global Payment Options (Prepaid)
Gift cards
Aggressive marketing
Enter prepaid
Strong consumer value proposition
Table 12-4
American Express Prepaid Card Value Proposition: NetSpend & Green Dot Comparison, 2012
Traditional and new distribution channels to bring scale
Distribution partnerships
Prepaid delivers favorable economics
Table 12-5 American Express Prepaid Cards: Economic Argument, 2012
We see strong customer retention potential
Upgrade opportunity a marketing masterstroke
Decline counteroffer, anyone?
Enticing youth and women
Bluebird pilot
Online and mobile payments integration
Blackhawk Network, Inc.
Recent acquisitions
Fly in the ointment
NetSpend and Green Dot distribution expansion
Green Dot
Competitive positioning
Growth strategy
Business model
Targeting low- to mid-income consumers across banking relationship spectrum
Distribution model
Retail distributors
Table 12-6
Green Dot Retail Distribution, 2012
Network acceptance members
Other channels
Products and services
Green Dot-Branded GPR Cards
Fee structure
Co-branded GPR cards
Reload services
Green PlaNET
Bank acquisition
Banking strategy
An overdraft dilemma?
Green Dot maintenance fees comprise 90% of overdrawn balances
Late posting also results in overdrafts
Reserve for uncollectible overdrawn accounts
Table 12-7 Green Dot Deposits & Accounts Receivable, 2011
Cardholder retention strategies
Major relationships and initiatives
Almost a Walmart subsidiary? 2 million cards?
Table 12-8
Walmart and Other Retailer Share of Green Dot Revenue, 2010-2011
Goodbye, Intuit
Table 12-9
The Intuit Effect: Impact of Intuit Revenue and Client Loss, 2010-2011
Performance summary
Card revenues and other fees
Cash transfer revenues
Interchange revenues
Key metrics: 2009 to 2011
Table 12-10 Green Dot Revenue Metrics, 2009-2011
Quarterly growth trends: 2011 and 2012
Table 12-11 Green Dot Key Quarterly Revenue and Other Metrics, Q1 2011-Q1 2012
NetSpend Holdings, Inc.
Growth strategy
Products and services
Service pricing and features
Distribution
Impressive retail footprint to generate more revenue
Table 12-12 NetSpend Holdings, Inc. Revenue, by Distribution Channel, 2012
Major client relationships
ACE Cash Express
PayPal
Corporate clients
Issuing bank relationships
Where the revenue comes from
The direct deposit connection
Table 12-13 NetSpend Holdings, Inc. Direct Deposit Analysis, 2012
Performance summary
Performance metrics
Table 12-14 NetSpend Holdings, Inc. Annual Performance Metrics, 2007-2011
Table 12-15 NetSpend Holdings, Inc. Quarterly Performance Metrics, 2011-2012
Scope and Methodology
Scope of Report
Report Methodology
Market size and forecast
Consumer survey methodology
Report Summary
Prepaid card payment and transaction volume: market size & forecast
Prepaid complementing overall debit transaction and volume growth
Prepaid cards for unbanked and underbanked and beyond
Government prepaid card volume and value
Gift Cards
Positive holiday spending trend
Purchase spend trends
Regulatory Analysis and Impact
Good news
But tighter regulation still strongly advocated
“The very name ‘prepaid card’ should mean what it says.”
Durbin Amendment and CARD Act
Exceptions related to prepaid cards and gift cards
Debit loss is prepaid gain
Reg E dormancy, inactivity and service fees
Consumer Financial Protection Bureau seeks new standards
Prepaid Challenges and Opportunities
Banking dissatisfaction & distrust
But frustration cuts both ways
Banking distrust among Gen Y, lower-income adults and Hispanics grows
Banking institutions shedding low-profit accounts: prepaid in the wings
Significant public policy issues in play?
Case in Point: JPMorgan Chase
Cross-selling the name of the game
If you’re not going to generate revenue for us, don’t expect a free ride
We believe this sets the stage for Chase Liquid prepaid
Increasing retention: churn/abandonment rates continue to challenge industry
Direct deposit as retention driver
Unbanked and underbanked opportunity
Reaching youth
Fee reduction and simplification
Cost analysis: prepaid really a bargain?
Fee reductions on the way
Overdraft control
Green Dot maintenance fees comprise 90% of overdrawn balances
Disclosure issues
Is new fee box the answer?
Prepaid Card Brand Analysis
American Express Prepaid Card
Fee analysis
Green Dot Prepaid Cards
Fee analysis
Direct Express
A model card?
Prepaid Cards in Context: The Consumer Banking & Payments Universe
Credit, Debit, Prepaid & Gift Card Usage Trends: 2010-2012
Prepaid Cards & the Banking Relationship
Prepaid Cardholder Financial Attitudes & Usage Rationales
Gift Card Usage & Spending Trends
Company Prepaid Strategies
CHAPTER 2 INTRODUCTION AND OVERVIEW
Introduction
Origins
Segmentation
Closed-loop gift cards
Open-loop gift cards
Closed-loop prepaid cards
Open-loop general purpose prepaid debit cards
Open-loop gift cards
These cards are funded by Payroll cards
Fees
Advantages
Drawbacks
Protection
Other terms
Demand deposit account (DDA)
Card issuer
Electronic Funds Transfer (EFT)
Merchant acquirer
Interchange fee
Signature-based (offline) transactions
PIN-based (online) transactions
Competitive landscape
Competitive factors
CHAPTER 3 MARKET SIZE AND FORECAST
Introduction
Prepaid card payment and transaction volume: market size & forecast
Table 3-1 U.S. Prepaid Card Market Size and Forecast: 2006-2014
Payment volume growth
Graph 3-1 U.S. Prepaid Card Payment Volume: Market Size and Forecast: 2009-2015
Transaction volume growth
Graph 3-2 U.S. Prepaid Card Transaction Volume: Market Size and Forecast: 2009-2015
2010 Federal Reserve Payments Study
Prepaid complementing overall debit transaction and volume growth
Many arguments in favor of continued debit growth
$14 billion in interchange revenue still not small change
But consumers may migrate to alternative payments if debit card cost goes up
Prepaid cards for unbanked and underbanked
Government Prepaid Card Segment
Electronic benefit transfer (EBT)
Cardholder fee prohibitions
Federal programs
Electronic mandate to phasing paper checks—and juice up Direct Express
State Programs
Prepaid debit significant to state programs
California rollout
Government Prepaid Card Volume, Transaction & Fee Analysis
Government prepaid card volume and value
Table 3-2 Volume and Value of Government Prepaid Card Purchase Transactions, 2010
Government prepaid card interchange analysis
Table 3-3 Government Prepaid Card Interchange Fee Revenue Received By Issuers, 2010
Government prepaid card cardholder fees
Average 2010 cardholder fee: $9.69 per card
Table 3-4 Government Prepaid Card Fee Analysis, 2010
Gift Cards
While the hype has moved elsewhere, gift cards are doing just fine
Table 3-5 Gift Card Purchase Intention, Card Number and Value: 2007-2011
Gift card purchase share segmentation
Table 3-6 U.S. Adult Gift Card Purchases: Dollar Value by Segment, 2010-2012
Purchase share leadership goes to . . .
Table 3-7 U.S. Adult Gift Card Purchases: Dollar Value Share by Segment, 2010-2012
CHAPTER 4 REGULATORY ANALYSIS AND IMPACT
Introduction
More regulatory protections, please
Taking the debate to the U.S. Senate
Good news
But tighter regulation still strongly advocated
CARD Act
The Durbin Amendment & debit interchange
Final rule sets interchange rate
Issuer exception
Prepaid exception
CARD Act exclusion: prepaid card vs. gift card
Network exclusivity prohibition and routing provisions
No prepaid exception
Woe to debit interchange!
Debit interchange loss analysis
The American Express exception
Debit loss is prepaid gain
Regulation E
What is it?
Consumer overdraft protection
Federal benefits electronic funds transfer
Dormancy, inactivity and service fees
Consumer Financial Protection Bureau seeks new standards
Reg E in play
Bureau of Consumer Financial Protection
What is it and what is it supposed to do?
What is the scope of its authority?
Broad rule-making authority
Broad enforcement authority
Prepaid review underway
Unauthorized transactions and limited liability protection
Overdraft practices, saving account usage and credit repair
Prepaid Access Final Rule
CHAPTER 5 PREPAID CHALLENGES AND OPPORTUNITIES
Introduction
Banking dissatisfaction & distrust
Consumer banking frustration
Bank Transfer Day
But frustration cuts both ways
Customer service complaints
Banking distrust among Gen Y, lower-income adults and Hispanics grows
Table 5-1 Consumer Trust in Giving Money to Banks among Younger Adults, Low-Income Adults and Hispanics, 2008-2011
Banking institutions shedding low-profit accounts: prepaid in the wings
Significant public policy issues in play?
Case in Point: JPMorgan Chase
History of success with government prepaid
Consumer banking powerhouse
Growing branches, online, mobile and next-generation ATMs
Card and payment processing growth
New upscale credit cards, new partners
Consumer banking regulation response to drive prepaid growth
Cross-selling the name of the game
If you’re not going to generate revenue for us, don’t expect a free ride
We believe this sets the stage for Chase Liquid prepaid
Table 5-2 JPMorgan Chase: Banking Services That Do Not Carry an “Explicit” Charge, 2012
Changing banking economics necessitate a shift in strategy
Table 5-3 JPMorgan Chase Consumer & Business Banking Revenue Growth Trends, 2005-2011
Proportionally less revenue generated by those with less at the bank
Table 5-4 Percent reduction in per HH variable contribution by segment, 2011
Threshold for profitability: $100,000 in deposits & investments?
Table 5-5 JPMorgan Chase Post-Regulation Revenue Composition by Wealth Segment
More wealth, more revenue
Table 5-6 JPMorgan Chase Distribution of households by wealth segment
Because the relationship is deeper
Table 5-7 JPMorgan Chase Products per household by wealth segment (industry)
Migration underway at other major banks
Increasing retention
High churn/abandonment rates continue to challenge industry
Direct deposit as retention driver
Supported by mobile technology
Unbanked and underbanked opportunity
Who are the unbanked?
Who are the underbanked?
Unbanked and underbanked prepaid card use
Table 5-8 Unbanked Households’ Use of General Spending Cards and Payroll Cards
Table 5-9 Underbanked Households’ Use of General Spending Cards and Payroll Cards
Reaching youth
CARD Act forecloses campus credit card marketing
Campus opportunity
A slew of heavy-hitting prepaid entrants
Campus ID cards
U.S. Bancorp’s Wolfpack One Card
Fee-friendly
Fee reduction and simplification
Random pricing
Cost analysis: prepaid really a bargain?
Fee reductions on the way
Overdraft control
An overdraft dilemma?
Green Dot maintenance fees comprise 90% of overdrawn balances
Late posting also results in overdrafts
Increasing transparency and education
Disclosure issues
Most consumers found to be clueless about prepaid card fees
And they take issues with prepaid card company disclosure obligations
Is new fee box the answer?
Simple, clear, and straightforward language
Format and visual design
Tradeoff between simplicity and comprehensiveness
Pure disclosure versus encouraging financial capability
Clear and consistent placement
CHAPTER 6 PREPAID CARD BRAND ANALYSIS
Introduction
General Purpose Reloadable Prepaid Cards
American Express Prepaid Card
Research and promotions
Reloadable
Benefits
Fee analysis
Table 6-1 American Express Prepaid Card Fee Structure, 2012
American Express for Target Card
American Express PASS Card
American Express Campus Edition Prepaid Card
Analysis
Chase Liquid
Nuts and bolts
Fee analysis
Security
Table 6-2 Chase Liquid Fee Comparison, 2012
Green Dot Prepaid Cards
Summary analysis
Nuts and bolts
Green Dot VIP provides fee reduction options
Reload options
Fee analysis
Table 6-3 Green Dot Prepaid Debit Card Fee Analysis, 2012
AARP Foundation Prepaid MasterCard
RushCard
Marketing
Differentiating features
Promotions
Reload options
Security
Technology
Competition
Fee analysis: choose your plan
Table 6-4 RushCard Fee Analysis, 2012
Walmart Money Card
Easy to get
Easy to use
Fee analysis
Table 6-5 Walmart MoneyCard Fee Analysis, 2012
Multiple reloading options
Security
Loopholes
Differentiating features
General Purpose Reloadable Prepaid Cards: Tax Preparation
H&R Block Emerald Card
Reload options
Security
Notable features and benefits
Limitations
Fee analysis
Table 9-1 H&R Block Prepaid Debit Card Fee Analysis, 2012
ATM fees
Table 6-6 H&R Block Prepaid Debit Card Fee Analysis, 2012
Intuit Refund Card
Add money
Rewards
Fee analysis
Table 6-7 Intuit Refund Card Prepaid Visa Debit Card Fee Analysis, 2012
Intuit GoPayment Card
Government Prepaid Cards
Direct Express
A model card?
Table 6-8 Direct Express Prepaid Debit Card Fee Analysis, 2012
MyAccountCard pilot
Table 6-9 MyAccountCard Visa Prepaid Debit Card Fee Analysis, 2012
Security
Reload options
Withdrawal limitations
Concerns
Sad ending
CHAPTER 7 PREPAID CARDS IN CONTEXT: THE CONSUMER BANKING & PAYMENTS UNIVERSE
Introduction and summary analysis
The Consumer Banking Relationship
Checking/savings account remain consumer banking cornerstone
Alternative payment accounts
Share of unbanked
Technology-based access
Table 7-1 Current Ownership of Deposit Accounts and Account Access Technologies, 2008-2009
Branch banking most common form of bank account access
Table 7-2 Incidence of Bank Account Access and Other Practices, Consumers vs. Adopters, 2009
Payment Instrument Analysis
Card and electronic payment adoption declines
Penetration gap between debit and credit widens
Prepaid cards used by one-third
Contactless payments
Table 7-3 Current Adoption of Payment Instruments, by Instrument Features, 2008-2009
What’s in your wallet?
Wallet stays the same size, but cards stay in wallet longer
Debit wallet footprint underscores importance as relationship touch point
More than two prepaid cards in wallet
Table 7-4 Number of Adopted Bank Accounts and Payment Cards, 2008-2009
Paper or plastic?
Paper instrument usage remains universal
Annual prepaid usage into double digits
Table 7-5 Incidence Use of Payment Instruments in a Typical Month, by Type of Instrument, 2008-2009
Card transaction share falls below 50%
Cash and check gain share!
Uptick in use of cash continues past the financial crisis
Prepaid card transactions a drop in the pool
And dwarfed by debit
Table 7-6 Usage Frequency and Share of Payment Instruments in a Typical Month, by Type of Instrument, 2008-2009
General purpose prepaid card penetration = specific purpose card penetration
Better to receive than to buy for self?
Table 7-7 Prepaid Card Usage & Cards per User, by Instrument Features, 2008-2009
Prepaid reload activity
Table 7-8 Prepaid Card Reloadings, 2008-2009
Consumer’s comparative perceptions of prepaid card cost
Prepaid cost improves but still lags other payment instruments
Check, cash and debit far more likely to be viewed as low cost
Table 7-9 Assessments of Payment Instruments, by Degree of Cost, 2008-2009
CHAPTER 8 CREDIT, DEBIT, PREPAID & GIFT CARD USAGE TRENDS: 2010-2012
Introduction and summary analysis
Credit, Debit, Prepaid & Gift Card Usage Trends
2012 prepaid usage penetration reaches 14%
Visa brand predominates
Gift card penetration stabilizes
Table 8-1 Consumer Payment Card Usage Trending, by Type: 2010-2012
Gender analysis
Prepaid growth driven disproportionately by female adopters
Women also drive gift card purchases
Table 8-2 Payment Card Usage Trending, by Type: Males v. Females, 2010-2012
Age analysis
Prepaid growth trends among 18-24s solid, but lag the average
Gift card usage declines
Table 8-3 Consumer Payment Card Usage Trending among 18-24s, by Type: 2010-2012
Hispanic/Latino Analysis
Hispanic prepaid and gift card uptake analysis
Table 8-4 Consumer Payment Card Usage Trending among Hispanics, by Type: 2010-2012
HH-Income Analysis
Prepaid cards proportionately more relevant to low-income consumers
Gift card penetration trails average
Table 8-5 Payment Card Usage Trending, Low-HH Income Consumers, by Type: 2010-2012
Low/mid-income usage trends
Table 8-6 Payment Card Usage Trending, Low/Mid-HH Income Consumers, by Type: 2010-2012
Mid- to high-HH income consumers show preference for AMEX prepaid
Table 8-7 Payment Card Usage Trending, Mid-HH Income Consumers, by Type: 2010-2012
HH income consumers show strong preference for AMEX prepaid
Table 8-8 Payment Card Usage Trending, High-HH Income Consumers, by Type: 2010-2012
CHAPTER 9 PREPAID CARDS & THE BANKING RELATIONSHIP
Introduction
A note on payment card engagement
American Express and Discover credit card engagement matched by prepaid
But a dearth of highly engaged users
Table 9-1 Card Payment Instrument Engagement & High-Frequency Engagement, by Card Type, 2012
Summary analysis: consumer prepaid card engagement
Table 9-2 Prepaid Card Engagement and High Engagement, by Demographic, 2012
Prepaid card penetration dwarfed by debit and credit card penetration
Table 9-3 Prepaid, Debit and Credit Card Usage Penetration, 2012
Validated by proprietary results
Table 9-4 Prepaid Card Users: Payment Card Cross-Usage, 2012
Prepaid cardholders: prepaid, debit & credit use by engagement degree
Prepaid card users tend to use a variety of payment card instruments
High-frequency prepaid card engagement
Table 9-5 Prepaid Card Users: Payment Card Cross-Usage, 2012
Debit cardholders: prepaid, debit & credit use by engagement degree
Debit card users far less apt to use prepaid
Table 9-6 Debit Card Users: Payment Card Cross-Usage, 2012
Debit & credit cardholders: prepaid engagement analysis
Engaged debit and credit card users: prepaid usage patterns
Table 9-7 Card Payment Instrument Users: Prepaid Card Usage and High-Frequency Prepaid Card Use, 2012
Highly engaged debit and credit card users: prepaid usage patterns
Table 9-8 High-Frequency Card Payment Instrument Users: Prepaid Card Usage and High-Frequency Prepaid Card Use, 2012
Prepaid users: cards in wallet
Most prepaid card holders have debit or credit card
Unbanked and uncreditworthy only a sliver of users?
Table 9-9 Debit Card and Credit Card Mix among Prepaid Users, 2012
The consumer banking relationship
Half of us have checking; 20% have no consumer banking relationship
Table 9-10 Consumer Banking and Loan Product Penetration, 2012
Banking relationship not a prepaid card usage driver
Credit card ownership
Checking account holders
Table 9-11 Payment Card Use & Usage Mix: Consumer Banking Product Usage Correlation, 2012
Consumer loan connection to payment card mix
Credit, debit and prepaid use each tied to consumer loan possession
But using prepaid card with another payment card strengthens loan use
Table 9-12 Payment Card Use & Usage Mix: Consumer Loan Product Usage Correlation, 2012
Car title loans and no consumer loan products produce opposite effect
Table 9-13 Payment Card Use & Usage Mix: Consumer Loan Product Usage Correlation, 2012
CHAPTER 10 PREPAID CARDHOLDER FINANCIAL ATTITUDES & USAGE RATIONALES
Introduction
Consumer Financial Attitudes, by Payment Card
Payment card use
Table 10-1 Consumer Financial Attitudes, by Payment Card Usage
Prepaid users: payment card usage mix
Bank distrust and financial insecurity more likely among prepaid-only users
Table 10-2 Prepaid Card Users’ Financial Attitudes, by Payment Card Usage Mix, 2012
Prepaid Card Usage Rationales & Influences
ashless preference and spending control
able 10-3 Prepaid Card Users: Prepaid Usage Rationales, 2012
Age analysis
Table 10-4 Prepaid Card Users: Prepaid Usage Rationales, by Age, 2012
HH income analysis
Table 10-5 Prepaid Card Users: Prepaid Usage Rationales, by HH Income, 2012
Race/ethnicity analysis
Table 10-6 Prepaid Card Users: Prepaid Usage Rationales, by Race/Ethnicity, 2012
Geographic density analysis
Table 10-7 Prepaid Card Users: Prepaid Usage Rationales, by Geographic Density, 2012
Regional analysis
Table 10-8
Prepaid Card Users: Prepaid Usage Rationales, by Region, 2012
Analysis by degree of prepaid card engagement
Table 10-9
Prepaid Card Usage Rationales, Engaged vs. Highly Engaged Prepaid Card Users, 2012
Analysis by prepaid card payment card usage mix
Table 10-10 Prepaid Card Usage Rationales, Engaged Prepaid Card Users v. Prepaid-Only Users, 2012
CHAPTER 11 GIFT CARD USAGE & SPENDING TRENDS
Introduction
Gift card usage and spending trending: summary analysis
Table 11-1 Gift Card Usage Trending, by Retailer Type: 2010-2012
Gift card usage and spending trending: gender analysis
Women more likely to purchase gift cards
Table 11-2 Gift Card Usage, by Retailer Type: Gender Analysis
But men generally spend more for gift cards in certain categories
Table 11-3 Gift Card Spending, by Retailer Type: Gender Analysis
Gift card usage and spending trending: age analysis
Middle age equates to gift card purchase tendencies
Table 11-4 Gift Card Usage, by Retailer Type: Age Analysis
18-24s big bookstore gift card spenders
Table 11-5 Gift Card Spending, by Retailer Type: Age Analysis
Gift card usage and spending trending: race/ethnicity analysis
Table 11-6 Gift Card Usage, by Retailer Type: Race/Ethnicity Analysis
Black and Hispanic consumers tend to spend more on electronics store cards
Table 11-7 Gift Card Spending, by Retailer Type: Race/Ethnicity Analysis
Gift card usage and spending trending: HH income analysis
Gift card use strongly correlates to HH income
Table 11-8 Gift Card Usage, by Retailer Type: HH Income Analysis
Gift card category spend also strongly correlates to HH income
Table 11-9 Gift Card Spending, by Retailer Type: HH Income Analysis
Gift card usage and spending trending: card brand analysis
Non-card branded gift cards garner higher usage share
Table 11-10 Gift Card Usage Trending, by Card Brand: 2010-2012
Visa brand gift cards garner higher spend
Table 11-11 Gift Card Spending, by Card Brand, 2012
CHAPTER 12: COMPANY PREPAID STRATEGIES
Introduction
Card Associations
MasterCard
Overview
Debit trend summary
Q1 2012 marks a new era at MasterCard
And exposure on Visa-branded cards
Process transactions jump
Prepaid programs
Targeted categories
Program management services
Mobile wallets and mobile alliances
Acquisition-based enhancements
Key prepaid relationships and developments
Successful public sector growth
Direct Express Debit MasterCard a huge success
Comerica partnership
Walmart partnership
Western Union relationship
Other retailer relationships
Google Wallet participation
Targeting youth
Multi-currency travel card
MasterCard by the numbers: trending debit metrics & ratios
Quarterly comparisons
Table 12-1 MasterCard U.S. Q1 2010, Q1 2011 and Q1 2012 Debit Card Metrics
Annual trends
Table 12-2
MasterCard U.S. Debit Card Metrics: 2010 v. 2011
Visa
Business summary
Transaction processing services
Core debit processing services
Consumer debit platforms
Exclusivity rule takes its toll
Volume share drop: get used to it
“We are never going to regain all of the market share . . .”
Prepaid programs
Argument for government prepaid
Government prepaid programs
Mobile prepaid a part of V.me digital wallet plan
Vodafone mobile payments agreement
Visa payWave
Visa by the numbers: trending debit metrics & ratios
Q1 2012 tells quite a story
Two-year quarterly trend analysis
Table 12-3 Visa U.S. Q1 2010, Q1 2011 and Q1 2012 Debit Card Metrics
Issuers, Program Managers and Distributors
American Express
Company overview
What Differentiates American Express Now Makes It More of a Target
No debit card?
Two Sides of the Demographic Coin: Premier Rewards Gold and ZYNC Card
Enterprise Growth Group
Global Payment Options (Prepaid)
Gift cards
Aggressive marketing
Enter prepaid
Strong consumer value proposition
Table 12-4
American Express Prepaid Card Value Proposition: NetSpend & Green Dot Comparison, 2012
Traditional and new distribution channels to bring scale
Distribution partnerships
Prepaid delivers favorable economics
Table 12-5 American Express Prepaid Cards: Economic Argument, 2012
We see strong customer retention potential
Upgrade opportunity a marketing masterstroke
Decline counteroffer, anyone?
Enticing youth and women
Bluebird pilot
Online and mobile payments integration
Blackhawk Network, Inc.
Recent acquisitions
Fly in the ointment
NetSpend and Green Dot distribution expansion
Green Dot
Competitive positioning
Growth strategy
Business model
Targeting low- to mid-income consumers across banking relationship spectrum
Distribution model
Retail distributors
Table 12-6
Green Dot Retail Distribution, 2012
Network acceptance members
Other channels
Products and services
Green Dot-Branded GPR Cards
Fee structure
Co-branded GPR cards
Reload services
Green PlaNET
Bank acquisition
Banking strategy
An overdraft dilemma?
Green Dot maintenance fees comprise 90% of overdrawn balances
Late posting also results in overdrafts
Reserve for uncollectible overdrawn accounts
Table 12-7 Green Dot Deposits & Accounts Receivable, 2011
Cardholder retention strategies
Major relationships and initiatives
Almost a Walmart subsidiary? 2 million cards?
Table 12-8
Walmart and Other Retailer Share of Green Dot Revenue, 2010-2011
Goodbye, Intuit
Table 12-9
The Intuit Effect: Impact of Intuit Revenue and Client Loss, 2010-2011
Performance summary
Card revenues and other fees
Cash transfer revenues
Interchange revenues
Key metrics: 2009 to 2011
Table 12-10 Green Dot Revenue Metrics, 2009-2011
Quarterly growth trends: 2011 and 2012
Table 12-11 Green Dot Key Quarterly Revenue and Other Metrics, Q1 2011-Q1 2012
NetSpend Holdings, Inc.
Growth strategy
Products and services
Service pricing and features
Distribution
Impressive retail footprint to generate more revenue
Table 12-12 NetSpend Holdings, Inc. Revenue, by Distribution Channel, 2012
Major client relationships
ACE Cash Express
PayPal
Corporate clients
Issuing bank relationships
Where the revenue comes from
The direct deposit connection
Table 12-13 NetSpend Holdings, Inc. Direct Deposit Analysis, 2012
Performance summary
Performance metrics
Table 12-14 NetSpend Holdings, Inc. Annual Performance Metrics, 2007-2011
Table 12-15 NetSpend Holdings, Inc. Quarterly Performance Metrics, 2011-2012
