A new report published by Allied Market Research projects that the global prepaid card market is anticipated to reach $3,653 billion by 2022, registering a CAGR of 22.7% from 2016 to 2022. Europe dominates the global market in terms of revenue, accounting for more than 49.1% share of the global market, followed by Asia-Pacific.
Prepaid cards are widely used across various industry verticals such as corporate institutions, retailers, government, and financial institutions. Presently, factors such as increase in awareness & ease of access and surge in the number of internet users & booming e-commerce industry drive the market growth. Moreover, growth in unbanked and underbanked population and emergence of new applications are expected to present lucrative opportunities to market players.
“Higher preference of prepaid cards to bank account cards has attributed to cost-effectiveness and flexibility,” explains Yogiata Sharma, Research Analyst, BFSI Research at Allied Market Research.
“Moreover, increase in awareness and convenience of these cards enhance the adoption of prepaid cards. Furthermore, emerging applications & acceptance of these prepaid cards for various transactions and increasing popularity among individuals traveling abroad are expected to boost the market growth in the future.”
The market is expected to grow at a significant rate in Europe and Asia-Pacific, owing to increase in demand for cash alternatives, rise in adoption of prepaid cards in retail establishments & government sectors, and widespread awareness of the benefits of prepaid cards among the populace. The prepaid card market in Europe is driven by rise in demand for smart cards and increased adoption of prepaid cards for easy payment.
Other developing and emerging regions, such as Asia-Pacific, Latin America, and Africa, are expected to grow during the forecast period, owing to increase in demand for electronic payment and growth of unbanked & underbanked population.
Countries such as Japan, China, and India dominated the global prepaid card market in the Asia-Pacific region during 2015-2016. India is one of the emerging markets in the Asia-Pacific prepaid card market, accounting for 8.0% of the Asia-Pacific prepaid card market. It is estimated to register the highest CAGR of around 37.2% from 2016 to 2022
Single-purpose prepaid card segment dominated the global prepaid card market in 2015, and is expected to maintain this trend throughout the forecast period. However, Multi-purpose prepaid card segment is expected to witness significant growth in the future, owing to the easy of accessibility and flexibility.
The general-purpose reloadable card segment is projected to maintain its dominance in the global prepaid card market, as these cards are used across various industry vertical such as financial institutions, government, and others. Moreover, gift card segment is expected to grow, as it is commonly issued by vendors or banks for use as an alternative to cash for purchases at particular stores or related businesses.
KEY FINDINGS OF THE STUDY
- In 2014, the single-purpose card segment dominated the global prepaid card market in terms of revenue, and is projected to grow at a CAGR of 42.1% during the forecast period.
- The general purpose reloadable card segment dominated the global prepaid card market, accounting for about 37.7% share in 2014.
- The retail establishment segment is expected to exhibit the fastest growth during the forecast period.
- China is the major shareholder in the Asia-Pacific prepaid card market, accounting for about 69.0% share.