Stored value market worth US$650 billion by 2010

The stored value marketplace will grow from US$216 billion in 2005 to more than US$650 billion by 2010, according to a report from The Pelorus Group. The company says that this growth will be fuelled by the fact that prepaid debit cards, which started out being sold to unbanked or under-banked people as a way of giving them access to electronic payments, are now being adopted by businesses 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. But the Stored Value: New Markets, New Growth report also suggests that, despite this growth, the evolution of the payments process has only just begun. The report also concludes that the relationships between banks, merchants, and individuals will be completely changed over the next few years.