Dublin, March 11, 2022 (GLOBE NEWSWIRE) — The “Data Book on Business and Investment Opportunities of Prepaid Cards and Digital Wallets in Latin America – Market Size and Forecast, Consumer Attitude and Behavior, Retail Spending” report has been added to from ResearchAndMarkets.com offer.

According to the publisher, the prepaid card market (by value) in Latin America grew at a CAGR of 10.0% during the period 2017-2021. During the forecast period from 2022 to 2026, the market is expected to register a CAGR of 14.3%, growing from US$62.96 billion in 2022 to US$107.53 billion by 2026.

The adoption of digital wallets and prepaid cards has increased significantly in Latin America. According to the fourth quarter 2021 global prepaid card market survey, fintech companies in the region are expanding their reach in the region to increase their market share. For example, Argentina-based FinTech company Uala is providing consumers with managed prepaid cards to issue 100,000 debit cards within five months of launching in Mexico in 2021.

Additionally, with the growing demand for cryptocurrencies in the region, many fintech companies are integrating crypto trading into their digital wallets. The publisher expects the prepaid card market to be supported by the innovative product launched targeting a large population of expatriates in a short and medium term perspective.

Global Digital Asset Exchange Entering the Brazilian Market with the Introduction of the Visa Crypto Card

Cryptocurrencies are gaining popularity around the world. In Brazil, the demand for cryptocurrencies has increased significantly over the past six to eight quarters. Additionally, in November 2021, the Brazilian government proposed a bill to legalize cryptocurrency in both the public and private sectors. Therefore, the publisher expects the government’s initiative to encourage fintech companies to launch their products in Brazil in the short to medium term.

  • In November 2021, Hong Kong-based digital asset exchange crypto.com began issuing Visa crypto cards for residents of Brazil.
  • These cards are prepaid in nature and need to be topped up via fiat or cryptocurrencies.
  • Decentralization allows the use of these Visa crypto cards to convert tokens into currencies of individual geographies.
  • The card can also be used to withdraw cash at ATMs or Point of Sale (PoS).
  • Additionally, cardholders will enjoy offers of up to 8% back on spending, access to the airport’s LoungeKey lounge and full subscription discounts for Spotify, Netflix and Amazon Prime.
  • Notably, Brazilians must pass an approval process after applying for the card, and eligible users will receive a virtual card after authorization.

Digital Wallets and Remittance Providers Expand Business in Brazil

With the growing expat community in Brazil, global payment providers are expanding their operations in the country. Companies are launching alternative banking solutions to meet the needs of people living and working outside the country in regions such as the United States, Italy, Portugal and Spain, as well as to support immigrants who will settle in Brazil.

  • In December 2021, Sokin, a London-based fintech, launched its global currency account and prepaid debit card in Brazil for its residents and expat community.
  • Customers are allowed to receive and send money and access a profitable currency exchange in 38 currencies for a monthly fee. Notably, consumers can do all of this through Sokin’s digital wallet.

With the growing number of Brazilian expats, products targeting these segments are expected to drive prepaid card usage in the country over the next four to eight quarters.

Digital payment providers team up with lenders to launch prepaid card solutions in Mexico

In Mexico, there are nearly 40 million unbanked people. With the changing payment trends in the country, fintechs are entering into strategic partnerships to launch prepaid card solutions with the aim of providing financial inclusion in the country.

  • In August 2021, i2c, a Mexico-based digital payment provider, partnered with KEO, a lending company and the Mexican customer loyalty program PAYBACK to launch KEO PAYBACK American Express Card, a prepaid card solution,
  • This new card will help customers access a financial alternative that will allow them to build a credit history.
  • In addition, this prepaid card will allow customers to benefit from the advantages of the loyalty program and also to access the American Express network for online and international purchases.
  • Customers will get quick credit approval based on the underwriting process done, and they won’t need any credit checks or documents for the same.

Scope

Digital Wallet Market Size and Forecast

  • Transaction value trend analysis
  • Trading volume trend analysis
  • Average value per transaction

Digital Wallet Market Size and Forecast by Key Segments

  • Retail purchases (value, volume, average value)
  • Trip (value, volume, average value)
  • Entertainment and games (value, volume, average value)
  • Restaurant (value, volume, average value)
  • Recharge and bill payment (value, volume, average value)

Market attractiveness of the prepaid card industry

  • Load value trend analysis
  • Transaction value trend analysis
  • Trading volume trend analysis
  • Average value per transaction
  • Number of cards

Market Share Analysis by Functional Attributes – Open Loop vs Closed Loop, 2016 – 2025

Analysis of market shares by categories of prepaid cards

Future growth dynamics of open-loop prepaid cards, 2016 – 2025

  • Transaction value trend analysis
  • Trading volume trend analysis
  • Average value per transaction
  • Number of cards

Future growth dynamics of closed-loop prepaid cards, 2016 – 2025

  • Transaction value trend analysis
  • Trading volume trend analysis
  • Average value per transaction
  • Number of cards

General Purpose Prepaid Cards Market Size and Forecast

Gift Card Market Size and Forecast

Gift Card Market Size and Forecast by Functional Attribute

  • By Open Loop gift card
  • By closed-loop gift card
  • By Retail Consumer Segment
  • By corporate consumer segment

Gift Card Market Share Analysis by Retail Categories

Gift Card Market Share Analysis by Gifting Occasion

Gift Card Market Share Analysis by Purchase Location

Entertainment and Gaming Prepaid Cards Market Size and Forecast

Teen and Campus Prepaid Cards Market Size and Forecast

Teen and Campus Prepaid Cards Market Size and Forecast by Functional Attribute

  • By Open Loop Teen and Campus prepaid card
  • By Closed Loop Teen and Campus prepaid card

Trade and Administrative Expense Prepaid Cards Market Size and Forecast

  • By Small Scale Business Segment
  • By intermediate business segment
  • By business sector
  • By government segment

Payroll Prepaid Cards Market Size and Forecast

  • By Small Scale Business Segment
  • By intermediate business segment
  • By business sector
  • By government segment

Prepaid Meal Cards Market Size and Forecast

  • By Small Scale Business Segment
  • By intermediate business segment
  • By business sector
  • By government segment

Travel Forex Prepaid Cards Market Size and Forecast

  • By retail
  • By Small Scale Business Segment
  • By intermediate business segment
  • By business sector
  • By government segment

Transit and Toll Prepaid Cards Market Size and Forecast

Health and Wellness Prepaid Cards Market Size and Forecast

Social Security and Other Government Benefit Programs Prepaid Cards Market Size and Forecast

Fuel Prepaid Card Market Size and Forecast

Utilities and Other Prepaid Cards Market Size and Forecast

Companies cited

  • Cencosud SA
  • Carrefour S.A.
  • Coto CICSA
  • MercadoLibre Inc
  • Importer and Exporter of Patagonia SA
  • Wal-Mart Stores Inc.
  • Garbarino S.A.
  • Casino Guichard Perrachon SA
  • Natura Cosmeticos SA
  • Lojas Americanas S.A.
  • Adeo Group
  • Magazine Luiza S.A.
  • Falabella SACI
  • SMU S.A.
  • Feria Chilena del Libro SA
  • PriceSmart Inc
  • Inditex, Industria de Diseno Textil SA
  • Confecciones Leonisa SA
  • Organization Soriana SAB de CV
  • Grupo Comercial Chedraui Sa de CV
  • Controladora Comercial Mexicana SAB de CV
  • Similar Farmacias SA de CV
  • Corporativo Fragua Sa de CV
  • The Home Depot Inc, The

For more information on this report, visit https://www.researchandmarkets.com/r/nvxlv4