Prepaid & Digital Wallet Report Released, CFPB Proposed Regulation, Fed’s Proposal to Cut Debit Fees

The U.S. prepaid card market is set for significant growth, expected to surge from $542.26 billion in 2023 to $903.93 billion by 2028, with a CAGR of 10.5%. This expansion is driven by rising adoption of digital wallets, particularly among Gen Z and millennials, and regulatory developments aimed at enhancing consumer protection.

The growing presence of tech giants in the payments market is catching the eye of regulators. Consumer Financial Protection Bureau (CFPB) is looking to gain additional authority to regulate technology firms moving into the payments space.

The Federal Reserve, in October 2023, proposed another cut to debit card fees - from the current 21 cents per transaction to 14.4 cents per transaction. The proposal, now open for public input, signifies the Federal Reserve's first attempt to modify the fee cap established in 2011.
 

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