RJ and Makay

Green Sheet Inc. recently published results from new report describing the unprecedented growth in the payroll card market. This report, published by the Aite Group and based on dozens of Aite Group interviews with industry participants, analyzes the market, determines its growth, and evaluates opportunities for prepaid debit and payroll card providers to fill the void at the bottom of the U.S. consumer financial services market.

The launch of an ambitious payroll card program by Walmart in 2009, the successful IPO of Green Dot in 2010, and NetSpend’s subsequent filing for an IPO have been historic milestones for the industry. Dollar volumes for the combined products reached $44 billion in 2009, a number Aite Group expects to rise to $164 billion for 2014. Multiple factors over the past few years — including the housing market bust, financial crisis, economic downturn, surge in unemployment, and large numbers of consumers defaulting on their debt — have contributed to the elimination of mainstream financial institutions in the low end of the market.