Market Size of Middle East and Africa Prepaid Card Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2020 - 2022 |
CAGR | > 9.00 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Middle East and Africa Prepaid Card Market Analysis
The Middle East and Africa prepaid card market are poised to grow at a CAGR of greater than 9% during the forecasted period. Prepaid cards are reloadable cards that you can use to make transactions anywhere that accepts credit or debit cards. There are no credit checks performed when applying for a prepaid card because you aren't borrowing money or connecting it to a current account. Additionally, using it won't have any impact on your credit score. Similar to gift cards or vouchers, prepaid cards enable their users to make purchases up until the time that money is available in the cards. It's common to use a prepaid debit card instead of carrying cash. Prepaid debit and prepaid credit cards are the two varieties of prepaid cards. With a prepaid debit card, you can load it with funds from your main checking account and use it just like a regular debit card up to the available balance. People frequently utilize prepaid credit cards, also referred to as "secured credit cards," to establish or raise their credit scores since they are backed by an initial "collateral payment" or "security deposit."
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 Industry Segmentation
Prepaid cards are a type of payment card that can be used just like credit cards or debit cards to make purchases or pay bills. These pre-loaded cards are distributed by banks, financial institutions, and other organizations. Users have the option to conduct a transaction without paying interest in the future. The Middle East and Africa Prepaid Card Markets are segmented by Offering (General purpose card, Gift card, Government benefit card, Incentive/Payroll card, and others), by Card type (Closed-loop card and Open-loop card), and by End-user (Retail, Corporate, and Government), and by Geography (Saudi Arabia, United Arab Emirates, South Africa, and the Rest of the Middle East and Africa). The report offers market size and forecasts for the Middle East and Africa Prepaid Card Market in value (USD Million) for all the above segments.
Offering | |
General Purpose | |
Gift Card | |
Government Card | |
Incentive/ Payroll | |
Others |
Card Type | |
Closed- Loop Card | |
Open- Loop Card |
End- User | |
Retail | |
Corporate | |
Government |
Geography | |
Saudi Arabia | |
United Arab Emirates | |
South Africa | |
Rest of the Middle East and Africa |
Middle East and Africa Prepaid Card Market Size Summary
The Middle East and Africa prepaid card market is experiencing significant growth, driven by the increasing adoption of cashless payment systems and the rise of digital banking. Prepaid cards, which function as reloadable cards for transactions without credit checks or impact on credit scores, are becoming popular alternatives to cash. The demand for these cards surged during the COVID-19 pandemic as they offered a safe and convenient payment method. The region's governments are actively promoting digital and mobile wallets, further boosting the prepaid card market. These cards are particularly appealing to individuals without traditional banking access, such as those with poor credit scores, students, expatriate workers, and blue-collar service providers, offering services like remittances, payroll processing, and government benefit disbursement.
The fintech landscape in the Middle East and North Africa is rapidly evolving, with companies replicating successful models from more advanced markets and introducing innovative payment solutions. This growth is supported by a favorable regulatory environment that encourages localized innovation and the development of new financial technologies. Major players in the prepaid card market, including Amazon, American Express, and Visa, are expanding their presence through technological advancements and strategic partnerships. Notable developments include the launch of Telda prepaid cards in Egypt, a collaboration between a fintech startup and a leading bank, and the Central Bank of Egypt's approval for OPay Egypt to issue prepaid cards. These initiatives highlight the dynamic nature of the market and the ongoing shift towards digital payment solutions.
Middle East and Africa Prepaid Card Market Size - Table of Contents
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1. MARKET DYNAMICS AND INSIGHTS
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1.1 Market Overview
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1.2 Market Drivers
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1.3 Market Restraints
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1.4 Insights on Various Regulatory Trends Shaping Market in the Middle East and Africa
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1.5 Insights on impact of technology
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1.6 Industry Attractiveness - Porters' Five Forces Analysis
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1.6.1 Threat of New Entrants
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1.6.2 Bargaining Power of Buyers
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1.6.3 Bargaining Power of Suppliers
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1.6.4 Threat of Substitutes
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1.6.5 Intensity of Competitive Rivalry
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1.7 Impact of Covid-19 on the Market
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2. MARKET SEGMENTATION
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2.1 Offering
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2.1.1 General Purpose
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2.1.2 Gift Card
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2.1.3 Government Card
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2.1.4 Incentive/ Payroll
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2.1.5 Others
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2.2 Card Type
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2.2.1 Closed- Loop Card
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2.2.2 Open- Loop Card
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2.3 End- User
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2.3.1 Retail
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2.3.2 Corporate
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2.3.3 Government
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2.4 Geography
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2.4.1 Saudi Arabia
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2.4.2 United Arab Emirates
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2.4.3 South Africa
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2.4.4 Rest of the Middle East and Africa
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Middle East and Africa Prepaid Card Market Size FAQs
What is the current Middle East and Africa Prepaid Card Market size?
The Middle East and Africa Prepaid Card Market is projected to register a CAGR of greater than 9% during the forecast period (2024-2029)
Who are the key players in Middle East and Africa Prepaid Card Market?
Amazon, Wal-mart Store Inc., Next Plc, Visa and American Express are the major companies operating in the Middle East and Africa Prepaid Card Market.