The Prepaid Advantage for Governments

• This VRL report looks at why prepaid is such a winning proposition in the public sector
• It examines factors such as paperless processes, lower costs and greater efficiency
• The report shows why the government sector promises a stable and growing market for companies offering prepaid solutions
• Case studies highlight the efficiency of prepaid cards in areas such as benefit payments and emergency relief

Summary

Prepaid solutions represent one of the most innovative propositions in the payment industry due to their inherent flexibility, convenience and applications across a broad range of industry sectors. It’s no wonder that banks, payment networks and programme managers have devoted such significant resources and investment into promoting their usage, but each industry vertical requires significantly different business models as end-user groups require different needs, and a one-size-fits-all approach will quickly doom some programmes to failure. It is widely recognised within the prepaid industry that perhaps of all prepaid sectors, it is the government sector which promises the most stable and growing growth for prepaid solutions. In this report, we examine the factors that have made prepaid such a win-win proposition in this sector and how government agencies have replaced cumbersome paper-based processes with prepaid solutions, helping them to lower costs and deliver greater efficiency and benefits to all stakeholders.

Scope

• The report looks at, and discusses the benefits of government prepaid schemes with a focus on the US, European, GCC and Latin American markets
• It includes an overview of the market size for government prepaid solutions in various parts of the world, giving an idea of the potential and scope for these solutions
• A number of global case studies are featured. These are where prepaid solutions have been successfully implemented by various government agencies
• The report highlights that in a recessionary environment, government prepaid segments are one of the few niches that enjoy a rise in transaction volume and usage

Reasons to buy

• Trace the evolution of prepaid cards and their applications within the government sector
• Identify the factors positioning prepaid as an ideal replacement for paper-based government disbursements
• Find out exactly how prepaid delivers benefits to all stakeholders
• Gain an overview of market size for government prepaid solutions in various parts of the world
• Ascertain the potential and scope for these solutions

Key highlights

• Examine the factors that have made prepaid such an attractive proposition in the cards sector
• Find out how government agencies have replaced paper-based processes with prepaid solutions, lowering costs and allowing them to deliver greater efficiency and benefits to all stakeholders
• This report looks at how industry stakeholders should approach the government sector, with a detailed breakdown of the various strata of government and the different disbursement areas in which they operate
• Gain an overview of market size for government prepaid solutions in various parts of the world

Table of contents

Executive Summary

1 Introduction
1.1 What is a prepaid card
1.2 The structure of prepaid cards
1.3 The payment network offerings

2 The evolution of government prepaid schemes
2.1 The emergence of government prepaid schemes
2.2 Looking to the future
2.3 Pros and cons for governments
2.4 Delivering a new customer base
2.5 The value of prepaid cards
2.6 G2G solutions – government as employer
2.7 G2C solutions
2.8 Governments as administrators
2.9 Benefits all along the payment chain
2.10 Realising the opportunities
2.11 What is required

3 Government structures and processes
3.1 Benefits of government prepaid schemes
3.2 Structure of government
3.3 Applying prepaid on a function or level segmentation
3.4 Government as an employer
3.5 Government administration
3.6 Government transfer payments

4 Government prepaid market estimates
4.1 The US Market
4.2 Europe
4.3 UK and Italy prepaid usage trends
4.4 Awareness of the prepaid concept
4.5 Reloading and fees

5 Case Studies
5.1 US Department of Treasury: Direct Express
5.2 PKO Bank Polski and MasterCard
5.3 American Red Cross, JP Morgan Chase
5.4 Visa and the government of the Dominican Republic
5.5 JP Morgan, Texas Workforce Commission
5.6 Visa, London Borough of Lewisham