Wells Fargo Customers Make Up 12% Of U.S. Prepaid Card Market
According to the latest Nilson Report, Wells Fargo represent the largest portion of the prepaid card market: 12% of total prepaid cards in the United States. Wells Fargo debit and prepaid cards were used for $306 billion in purchases last year over the course of eight billion transactions.
Overall, debit card usage increased by 6.7% in America from 2015 to 2016. Wells Fargo saw a 6.9% increase during the same time. The top 50 prepaid card issuers reported a total of $1.7 billion in transactions for 2016. Americans made $5.648 trillion purchases in credit, debit and prepaid card purchases in 2017, up 7.0% versus a year ago.
Wells Fargo has been under intense scrutiny since its fake accounts scandal, but the bank has tried to rebuild its reputation and regain its customer loyalty. This report may indicate that prepaid customers still trust Wells Fargo with their money, even if new account openings have dropped consistently over the last several months.
The prepaid card industry may see additional growth if new regulations from the CFPB take effect. The rules are designed to limit consumer losses in the event of errors and give users access to more information about their funds. There will be new limits on overdrafts and more transparency about fees on prepaid accounts, which may encourage more people to use prepaid cards to store their money.