Middle East and Africa Prepaid Card Market Analysis
The Middle East and Africa Prepaid Card Market is expected to register a CAGR of greater than 9% during the forecast period.
As a cash substitute during the COVID-19 pandemic, prepaid cards saw a sharp increase in demand throughout African and Middle Eastern countries. The expansion of technology-driven goods and services is largely to blame for the increase in the use of prepaid card payment methods in this region. Governments are also encouraging residents of the region to use cashless payment systems like mobile and digital wallets, which is promoting the expansion of prepaid cards there.
Prepaid cards are also gaining increasing adoption among consumers in Middle east and Africa who do not have a good credit score or an existing bank account in the region. Moreover, prepaid cards are also gaining traction among students, expatriate workers, and blue-collar service providers, as the payment solution offers a range of services such as sending remittances, payroll processing, gifting, government benefit disbursement, and several others
Middle East and Africa Prepaid Card Market Trends
Digital and Mobile Banking is Driving the Market
Mobile banking offers customers various real-time physical and digital touchpoints, representing an entirely new, reinvented customer journey. Banks must continually assess the customer journey in light of customer satisfaction metrics and learn how to meet customers' needs. For the time being, a hybrid strategy that combines human interaction with technological innovation may be the best method to address client needs that are difficult to transfer entirely to the digital space.
The emergence of digital banking is exciting since these services will fast become the standard. Because of their characteristics, they are more adaptable and creative while coming up with answers. Compared to regular high-street banks, they have significantly lower acquisition expenses. They can also use data right away, allowing them to continuously enhance their services and meet the needs of their clients. These factors are driving the market of prepaid cards in the MENA region.
Increase in FinTech Services is driving the Market
The initial wave of fintech companies in the Middle East and North Africa (Mena) area have emerged as expected, replicating business models from more advanced fintech markets and offering wallets and creative payment methods including platforms that use sound and Bluetooth. The fast-expanding FinTech ecosystem is more expansive and revolutionary thanks to an increasingly sophisticated supportive regulatory environment. The industry is going through a phase of localized, the cooperative invention that gives rise to new loan solutions, virtual/prepaid card payment systems, sector-specific digital services, and improvements in wealth technology and regulatory technology.
To stay ahead of the curve and compete as market leaders, Mena's FinTech entrepreneurs must overcome several numbers of new issues. One of the most expected worries is value: with so many unique commercial methods and unproven solutions, it is challenging for investors to judge real-world value. Additionally, there is a genuine risk that there may be significant sums of money chasing bad ideas or the subpar execution of good ones in a climate of excessive liquidity in the capital markets.
Middle East and Africa Prepaid Card Industry Overview
The report covers major players operating in the Middle East and Africa prepaid cards Market. In terms of market share, few of the major players currently dominate the market. However, with technological advancement and service innovation, domestic to international companies are increasing their market presence by securing new contracts and tapping new markets. It has major players, including Amazon Inc., American Expess, Visa, etc.
Middle East and Africa Prepaid Card Market Leaders
Amazon
Wal-mart Store Inc.
Next Plc
Visa
American Express
- *Disclaimer: Major Players sorted in no particular order
Middle East and Africa Prepaid Card Market News
- In September 2022, One of Egypt's leading banks and a fintech company jointly created Telda prepaid cards, which were powered by Mastercard's debut. The ground-breaking payment solution is the result of a fruitful partnership between Telda, a rapidly expanding Egyptian fintech start-up, and Banque du Caire, one of the nation's top financial institutions.
- In April 2022, The Central Bank of Egypt has given the top fintech and electronic payments startup, OPay Egypt, the initial go-ahead to issue prepaid cards using its OPay app.
