New research from Mercator presents case studies that illustrates best practices for transitioning into digital distribution.

The competitive landscape for payments is rapidly changing with the emergence of new technologies and consumer preferences for virtual, digital, and mobile products. Companies are at risk of displacement if they don’t respond accordingly and update their businesses to embrace these technologies.

New research from Mercator Advisory Group, Embracing a Digital Future: Three Case Studies in Prepaid Card Distribution, examines the successful transition from offline to digital channels — including mobile, online, and virtual — by the three major players in the card distribution market: Blackhawk Network Holdings Inc.; epay, a division of Euronet Worldwide Inc.; and InComm.

The strategic decisions of the three companies have positioned them well to respond to these changing dynamics. Their decisions over the last three years are organized into separate categories, including entering new businesses, updating existing lines of business, and developing new technologies.

How they achieved these goals is broken down in the report into various strategies that can be implemented across a variety of business types.

“The companies that have been largely dependent on plastic cards have found ways to prepare for a digital future,” said Ben Jackson, director of the prepaid advisory service at Mercator. “Their examples provide lessons for companies who need to adapt to new technologies.”

Highlights of the report:

• an introduction to key consumer trends toward digital and their business implications;
• case studies of the three largest card distributors and their digital strategies;
• a summary and evaluation of the strategic decisions these companies have made in order to address consumer trends; and
• A best practices guide to begin development of acomprehensive digital strategy.

One of 10 exhibits in the 21-page report:

source: Mercator Advisory Group