According to PayNXT360’s Q2 2021 Global Prepaid Card Survey, prepaid card market in the United Kingdom is expected to grow by 12.5% on annual basis to reach US$ 50,574.1 million in 2021.The prepaid card market expected to grow over the forecast period, recording a CAGR of 11.3% during 2021-2025. The prepaid card market in the United Kingdom will increase from US$ 44,947.0 million in 2020 to reach US$ 68,951.2 million by 2025.

The impact of the global pandemic has been strongly felt by brick-and-mortar retailers globally. A similar trend was observed in the United Kingdom. Leading retailers are still struggling to make ends meet as fewer shoppers are visiting local parades and malls. Moreover, the lockdown has also accelerated the move towards online shopping, adding to the misery of physical retail stores. Therefore, the UK government is taking several steps to support retailers and promote digital payments. For instance,

  • The Northern Ireland government announced to offer free shopping prepaid cards to adults as part of the ?145 million plan to support the brick-and-mortar stores. The government disbursement through prepaid cards would mean that 1.4 million people in Northern Ireland over 18 years would have an extra ?100 to spend on high streets rather than online.

    Corporate prepaid card platform Soldo raised US$180 million in the United Kingdom:

    For a long time, expense management has been a pain point for employees and accounting departments, not only in the United Kingdom but also in other parts of the world. Startups are raising funds to develop innovative products, including expense management and a corporate prepaid card platform to overcome challenges and simplify the process. For instance,
  • In July 2021, Soldo, a London-based platform that issues employees with prepaid company cards linked with an automated expense management system, raised US$180 million in funding. Moreover, Soldo serves more than 26,000 customers, ranging from small to medium-sized businesses to mid-market enterprises and large multinationals across 30 countries. Some of its customers include Mercedes Benz, Bauli, and Brooks Running, among several others.