Springbok Services Inc.’s recent Chapter 11 bankruptcy filing suggests the prepaid card market is beginning to enter into a period of uncertainty off the heels of new government regulation and slimming margins, observes one analyst.
The Englewood, Colo.-based prepaid card provider filed for bankruptcy protection June 18 in the U.S. Bankruptcy Court in Colorado, according to court documents.
Small to midsize companies such as Springbok are operating on uneven ground in that they face uncertainties such as the impact of government regulation in the marketplace, says Adil Moussa, an analyst for Aite Group.
“Prepaid is just getting hammered [in the marketplace] right now,” he says. “The margins are thin, and unless you’re bringing a different type of value to the table, you’re not going to survive.”
