Middle East and Africa Prepaid Card Market Size

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