Global Prepaid Market Report 2021 with Focus on How a Change in Reg. II Could Unravel Fintechs

DUBLIN, Oct. 18, 2021 /PRNewswire/ — The “An Exploration of the Complex Prepaid Market and How a Change in Reg. II Could Unravel Fintechs” report has been added to’s offering.

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Revenue from interchange fees makes up a large share of many fintechs’ income, but a letter from The Clearing House (TCH) to the Federal Reserve Board may change regulations and cost fintechs much of this profit.

The prepaid value chain is made up of a complex web of players, with some benefitting more from interchange revenues than others. This latest research report, An Exploration of the Complex Prepaid Market and How a Change in Reg. II Could Unravel Fintechs, discusses TCH’s letter and its possible implications – intended and otherwise – on the prepaid market.

“In effect, answers to the TCH’s FAQs could dramatically transform the prepaid market. While fintechs would lose a significant amount of interchange revenue – often one of their key income-generating activities – traditional financial institutions who have never benefitted from this revenue would gain a competitive advantage. Smaller fintechs and companies that partner with small issuers would also benefit from their larger fintech competitors’ reduced interchange revenue,” wrote James O’Brien and Laura Handly, market research analysts and authors of the report.

Highlights of the report include:

  • Mapping of the complex prepaid value chain and the path along which interchange revenue flows
  • Close examination of Reg. II and the ways in which TCH’s letter could alter its interpretation
  • Specific examples of the ways in which powerful fintechs have taken advantage of what TCH sees as a loophole in Reg. II
  • Analysis of the fintech prepaid card model and the degree to which it is vulnerable to proposed changes

Key Topics Covered:

1. Executive Summary

2. Introduction

3. The Prepaid Value Chain

4. Interchange Fees

5. Different Regulations for Fintechs and Traditional Financial Institutions

6. Understanding Value Chain Dynamics

7. Conclusion

8. References

Companies Mentioned

  • Bancorp
  • PayPal
  • Robinhood
  • Sutton Bank
  • The Clearing House

For more information about this report visit

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Written by Tenner Smith

Tenner Smith - I have experience in financial intelligence and automated intelligence. In industry I have worked on artificial intelligence and machine learning. Tenner Smith is a reporter at DF media.

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