PrePaid Calling Cards Overtaking Promotional Cards

Research just released by Atlantic- ACM is billed as showing that prepaid telephone cards are now overtaking promotional calling cards in the US market for the first time.

In its 200-page report, entitled "Calling and Prepaid Cards: Market Dynamics and Forecasts 1998-2002," Atlantic says that the market looks set to crack the $3 billion mark this year.

"For the first time, 1997 revenues for the carriers from retail sales for prepaid calling cards were higher than revenues from promotional calling cards," said Judy Reed-Smith, the company’s CEO, who added that the four markets in the US for prepaid calling cards are promotional, retail, collectible, and fundraising.

"The size of the US marketplace for all prepaid and smart cards has grown from $12 million in 1992 to $2.2 billion in 1997 to $3.2 billion in 1998," she explained.

According to Reed-Smith, prepaid cards given away for promotion, teach US consumers how to use them. "With this knowledge, consumers are buying prepaid cards at retail as a convenience and as a budgeting tool," she said.

The report is billed as offering advanced information about new payment card networks, ways to increase consumer acceptance, the anticipated rates of growth of different types of prepaid cards, as well as detailing projections of prepaid calling card sales through to the year 2002.

Atlantic-ACM’s Web site is at http://www.atlantic-acm.com.

(Contact: Peter Arnold 781-239-1030; Atlantic-ACM 617-720-3700)