Latin America Prepaid Card and Digital Wallet Market Intelligence and Future Growth Dynamics Databook - Q1 2026 Update

Accelerated shift of “prepaid use-cases” toward instant payments in Brazil

• Brazil: Pix recurring payments moves into subscription/utility flows. Pix expanded into recurring payments (“Pix Automático”), enabling bill-like and subscription-like payments that historically used cards or bank debit. This reduces the share of routine digital payments that default to card products, including prepaid.
• The central bank positioned Pix Automático to simplify merchant setup and serve consumers without credit cards, which is important in a market where many users lack credit access.
• Prepaid programs in Brazil are likely to focus on controlled spend, corporate/benefits, and specific merchant bundles, while generic “everyday spend” growth faces stronger competition from Pix features. The pressure should intensify as Pix adds more commerce-friendly functions.

Regulatory reset of prepaid-like employee benefits in Brazil

• Brazil: fee caps, faster settlement, and interoperability timeline in the meal voucher market
• A presidential decree caps merchant fees (MDR) in the meal voucher market and shortens settlement time, while setting a timeline for interoperability at POS. This directly changes the economics and acceptance model in one of the region’s largest “prepaid-adjacent” categories.
• Policy focuses on reducing merchant costs and increasing competition in a concentrated market dominated by Edenred (Ticket), Pluxee, Alelo, and VR.
• Expect margin compression and more aggressive competition for employer and merchant distribution; interoperability reduces lock-in and shifts differentiation toward service quality, analytics, and merchant relationships. This should intensify as implementation deadlines approach and legal challenges play out.

Mexico’s payment-network reform pushes acceptance and cost dynamics that matter for prepaid

• Mexico: draft rules for card payment networks (interoperability/efficiency/cost)
• CNBV and Banxico opened a public consultation on proposed “general provisions” for payment networks, aimed at improving acceptance conditions, interoperability, and the cost structure for card payments. Prepaid programs are sensitive to these rules because prepaid value depends on broad, low-friction merchant acceptance.
• Policymaker intent to widen card acceptance and improve the competitiveness of the ecosystem, especially for merchants and consumers.
• If finalized, the rules may accelerate merchant enablement and routing practices, raising compliance expectations for networks and participants. Competitive pressure should increase, particularly for acquirers/processors and issuing programs relying on legacy pricing structures.

Stronger authentication requirements in Peru raise operating requirements for card-based products

• Peru: two-factor authentication requirements for card-present and card-not-present transactions
• The SBS introduced requirements that, for new cards, card-present transactions require two factors (e.g., chip/digital representation and PIN) and card-not-present transactions require two factors (e.g., card data and a dynamic verification code or similar). These changes affect prepaid-linked cards by altering transaction flows and liability expectations.
• Fraud and dispute management pressures in digital commerce and POS environments, with supervisors pushing stronger authentication standards.
• Programs will need stronger risk tooling and authentication UX to reduce friction; issuers/processors with mature security stacks will scale faster. This should intensify as the market adapts to compliance timelines and customers adjust to new authentication patterns.

• Regional: stablecoin-linked cards and SME-targeted business cards
• Visa partnered with Bridge to launch stablecoin-linked Visa cards across several Latin American countries (Argentina, Colombia, Ecuador, Mexico, Peru, Chile), enabling spend from stablecoin balances at Visa-accepting merchants, with value stored and converted for purchase in a way similar to prepaid cards.
• Mastercard and L’Oréal launched a joint business card for beauty salons in the region, initially issued in Mexico through Clara, indicating targeted issuance models for SMEs rather than generic consumer prepaid.
• Expect more “programmatic issuance” aimed at narrow segments (gig, SMEs, vertical commerce) and more cross-border product experimentation. Growth is likely to continue, but scaling will depend heavily on local licensing, compliance, and partner distribution.

Competitive Landscape of the Latin America Prepaid Card Market

Current Market Dynamics

• Latin America prepaid is increasingly shaped by two forces: real-time payments absorbing everyday transactions, and policy-driven reforms affecting card acceptance and prepaid-adjacent categories. Brazil’s Pix roadmap, especially for recurring payments, signals that “routine payments” can shift away from cards, including prepaid cards.
• At the same time, regulatory decisions are directly changing economics in large prepaid-like segments. Brazil’s meal voucher decree and Mexico’s payment-network consultation show that authorities are intervening in areas such as fees, acceptance rules, and interoperability that determine the viability of prepaid programs at merchants.

Key Players and New Entrants (with examples)

• In Brazil’s worker-benefits voucher market, the competitive set is concentrated: Reuters identifies Edenred (Ticket), Pluxee, Alelo, and VR as dominant players with an estimated combined majority share. These firms are now operating under new constraints on merchant pricing and settlement terms, which alter competitive levers.
• New entrants and expansion moves are visible through licensing and market-entry strategies rather than pure prepaid launches. Revolut disclosed that it has applied for a full banking license in Peru and announced expansion plans across Brazil, Mexico, Colombia, and Argentina, illustrating how new-scale digital banks may enter issuance and wallet-linked card markets over time.

Recent Launches and Partnerships

• Visa’s partnership with Bridge to launch stablecoin-linked Visa cards across multiple Latin American countries is a clear example of networks enabling new stored-value-to-spend models that resemble prepaid mechanics. The model converts a user’s stablecoin balance into local currency for merchant settlement, expanding the range of “value sources” available for card acceptance.
• Mastercard and L’Oréal’s joint business card for beauty salons, initially issued in Mexico via Clara, shows how partnerships are being used to build vertical-specific issuance propositions for SMEs. These structures typically rely on embedded distribution (e.g., merchant ecosystems) rather than mass-market prepaid placement.

Merger and Acquisitions

• In the last 12 months, the source set used here has seen more material competitive moves driven by regulation and partnerships than large prepaid M&A announcements. That said, platform capability consolidation is occurring around infrastructure and program enablement (e.g., Visa’s partnership model with Bridge, which Reuters notes was acquired by Stripe).
• Where M&A does appear, it tends to be about acquiring rails, processing, or program-management capabilities that support issuance at scale rather than buying a prepaid portfolio for volume. This pattern aligns with the region’s current focus on compliance readiness and distribution partnerships.

Anticipated Market Evolution

• Brazil is likely to see intensified competition in card-adjacent categories as Pix features expand and benefits/voucher regulations reshape pricing and acceptance. Prepaid propositions that depend on “generic spending” will face higher substitution risk, while controlled-spend and employer-led flows may remain resilient.
• Mexico’s payment-network rules, if finalized, could shift how acceptance grows and how costs are distributed across the ecosystem, changing the economics for prepaid issuance and merchant acceptance. Regionally, more segment-specific issuance (SME, gig, vertical commerce) is likely, but scaling will track licensing outcomes and security/compliance requirements.

Regulatory Changes Implemented in the Last 12 Months

• Brazil’s decree on the meal voucher market capped merchant fees and shortened settlement timeframes, while also setting a timeline for interoperability at POS. Edenred publicly acknowledged the new framework and referenced potential legal action, underscoring the regulatory impact on leading providers.
• Mexico’s CNBV and Banxico put proposed rules for payment networks out for public consultation in October 2025, explicitly targeting improved acceptance and interoperability, as well as changes to the operational framework. Peru’s SBS also published card security requirements that set out two-factor authentication expectations for card-present and card-not-present transactions.

Overview of Prepaid Cards and Digital Wallet Market

Prepaid Card Market Analysis

• Metrics Assessed: The study examines the prepaid card market through various lenses, including transaction value, transaction volume, average transaction value, load value, and the total number of cards in circulation.
• Card Types: A distinction is made between open-loop and closed-loop prepaid cards, providing insights into their respective market shares and growth trajectories.
• Usage Categories: The report segments the prepaid card market into various categories such as general-purpose cards, business and administrative expense cards, travel forex cards, and meal cards.
• Business Segmentation: Further segmentation is provided based on business size and type, including small-scale businesses, mid-tier businesses, enterprise-level businesses, government entities, and retail consumers.
• Sector-Specific Applications: The analysis extends to specific sectors utilizing prepaid cards, including transit and toll payments, healthcare and wellness services, social security and other government benefit programs, fuel purchases, utilities, and more.

Digital Wallet Market Insights

• Key Segments: The digital wallet market is dissected across five primary spending categories: retail shopping, travel, entertainment and gaming, dining establishments, and recharge and bill payments.
• Performance Metrics: For each segment, the report evaluates transaction value, transaction volume, and average transaction value, offering a granular view of consumer spending behaviors.
• Retail Spend Breakdown: An in-depth analysis is provided for retail spending via digital wallets, covering categories such as food and grocery, health and beauty products, apparel and footwear, books, music and video, consumer electronics, pharmacy and wellness, gas stations, restaurants and bars, toys, kids and baby products, services, and other miscellaneous categories.

Virtual Prepaid Card Market Segmentation

• Categories Analyzed: The virtual prepaid card market is segmented into key categories, including general-purpose cards, gift cards, entertainment and gaming cards, teen and campus cards, business and administrative expense cards, payroll cards, meal cards, travel forex cards, transit and toll cards, social security and other government benefit program cards, fuel cards, utilities, and other miscellaneous categories.
• Performance Evaluation: For each category, the report assesses transaction value, providing insights into the adoption and usage patterns of virtual prepaid cards across different consumer segments.

Consumer Usage Trends

The report delves into consumer behavior concerning prepaid cards, segmented by:

• Age Groups: Identifying usage patterns across different age demographics.
• Income Levels: Analyzing how income brackets influence prepaid card adoption and usage.
• Gender: Examining differences in usage trends between genders.

Report Scope

Prepaid Payment Instrument Market Size and Forecast

• Transaction Value Trend Analysis
• Transaction Volume Trend Analysis
• Average Value per Transaction
• Market Share Analysis by Prepaid Card vs. Digital Wallet

Digital Wallet Market Size and Forecast

• Transaction Value Trend Analysis
• Transaction Volume Trend Analysis
• Average Value per Transaction
• Market Share Analysis by Key Segments

Digital Wallet Market Size and Forecast by Key Segments

• Retail Shopping (Value, Volume, Avg. Value)
• Travel (Value, Volume, Avg. Value)
• Restaurant (Value, Volume, Avg. Value)
• Entertainment and Gaming (Value, Volume, Avg. Value)
• Recharge and Bill Payment (Value, Volume, Avg. Value)

Digital Wallet Retail Spend Dynamics

• Food and Grocery - Transaction Value
• Health and Beauty Products - Transaction Value
• Apparel and Foot Wear - Transaction Value
• Books, Music and Video - Transaction Value
• Consumer Electronics - Transaction Value
• Pharmacy and Wellness - Transaction Value
• Gas Stations - Transaction Value
• Restaurants & Bars - Transaction Value
• Toys, Kids, and Baby Products - Transaction Value
• Services - Transaction Value
• Others - Transaction Value

Prepaid Card Industry Market Attractiveness

• Load Value Trend Analysis
• Transaction Value Trend Analysis
• Transaction Volume Trend Analysis
• Average Value per Transaction
• Number of Cards
• Market Share Analysis by Functional Attributes - Open Loop vs. Closed Loop
• Market Share Analysis by Prepaid Card Categories

Open Loop Prepaid Card Future Growth Dynamics

• Transaction Value Trend Analysis
• Transaction Volume Trend Analysis
• Average Value per Transaction
• Number of Cards

Closed Loop Prepaid Card Future Growth Dynamics

• Transaction Value Trend Analysis
• Transaction Volume Trend Analysis
• Average Value per Transaction
• Number of Cards

Prepaid Card Consumer Usage Trends

• By Age Group
• By Income Group
• By Gender

Prepaid Card Retail Spend Dynamics

• Food and Grocery - Transaction Value
• Health and Beauty Products - Transaction Value
• Apparel and Foot Wear - Transaction Value
• Books, Music and Video - Transaction Value
• Consumer Electronics - Transaction Value
• Pharmacy and Wellness - Transaction Value
• Gas Stations - Transaction Value
• Restaurants & Bars - Transaction Value
• Toys, Kids, and Baby Products - Transaction Value
• Services - Transaction Value
• Others - Transaction Value

General Purpose Prepaid Card 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

Gift Card Market Size and Forecast by Consumer Segments

• 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 Card Market Size and Forecast

Teen and Campus Prepaid Card Market Size and Forecast

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

• By Open Loop Teen and Campus Prepaid Card
• By Closed Loop Teen and Campus Prepaid Card

Business and Administrative Expense Prepaid Card Market Size and Forecast

Business and Administrative Expense Prepaid Card Market Size and Forecast by Consumer Segments

• By Small Scale Business Segment
• By Mid-Tier Business Segment
• By Enterprise Business Segment
• By Government Segment

Payroll Prepaid Card Market Size and Forecast

Payroll Prepaid Card Market Size and Forecast by Consumer Segments

• By Small Scale Business Segment
• By Mid-Tier Business Segment
• By Enterprise Business Segment
• By Government Segment

Meal Prepaid Card Market Size and Forecast

Meal Prepaid Card Market Size and Forecast by Consumer Segments

• By Small Scale Business Segment
• By Mid-Tier Business Segment
• By Enterprise Business Segment
• By Government Segment

Travel Forex Prepaid Card Market Size and Forecast

Travel Forex Prepaid Card Market Size and Forecast by Consumer Segments

• By Retail
• By Small Scale Business Segment
• By Mid-Tier Business Segment
• By Enterprise Business Segment
• By Government Segment

Transit and Tolls Prepaid Card Market Size and Forecast

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

Fuel Prepaid Cards Market Size and Forecast

Utilities, and Other Prepaid Cards Market Size and Forecast

Virtual Prepaid Card Industry Market Attractiveness

• Transaction Value Trend Analysis
• Transaction Volume Trend Analysis
• Average Value per Transaction
• Market Share Analysis by Key Virtual Prepaid Card Categories

Virtual Prepaid Card Market Size by Key Categories

• General Purpose Prepaid Card - Transaction Value
• Gift Card - Transaction Value
• Entertainment and Gaming Prepaid Card - Transaction Value
• Teen and Campus Prepaid Card - Transaction Value
• Business and Administrative Expense Prepaid Card - Transaction Value
• Payroll Prepaid Card - Transaction Value
• Meal Prepaid Card - Transaction Value
• Travel Forex Prepaid Card - Transaction Value
• Transit and Tolls Prepaid Card - Transaction Value
• Social Security and Other Government Benefit Programs Prepaid Card - Transaction Value
• Fuel Prepaid Cards - Transaction Value
• Utilities, and Other Prepaid Cards - Transaction Value

Reasons to Buy

• In-depth understanding of Latin America’s prepaid card and digital wallet market dynamics: Gain a structured view of market opportunity, operating models, and competitive dynamics across 80+ segments and sub-segments, spanning prepaid cards (open-loop and closed-loop), digital wallets, wallet-linked prepaid credentials, and virtual prepaid cards. Analysis focuses on how stored value is issued, funded, used, and regulated in Latin America’s payments ecosystem.
• Understand Latin America’s market opportunities and key trends with forward-looking forecasts (2021-2030): Assess historical performance and future outlook for prepaid cards and digital wallets using core KPIs such as transaction value, transaction volume, active users, and average transaction value, with clear separation between consumer and commercial use cases and wallet-based versus card-based spend.
• Develop Latin America specific prepaid and digital wallet strategies: Identify high-growth segments and structurally resilient use cases to support market-entry, expansion, or optimisation strategies. Evaluate Latin America-specific drivers, constraints, and risks, including regulation, macroeconomic conditions, and adoption patterns, to inform realistic, market-aligned strategic decisions.
• Detailed analysis of Latin America’s market share by key players across prepaid and wallet categories: Understand competitive positioning through issuer and platform-level market share analysis across major prepaid card types, digital wallets, and virtual prepaid instruments. Coverage highlights how banks, fintechs, and wallet providers compete across funding sources, acceptance reach, and use case depth.
• Insights into Latin America’s consumer attitudes and payment behaviour: Analyse how consumers use prepaid cards, virtual prepaid cards, and digital wallets for everyday spend, e-commerce, subscriptions, and controlled payments. Understand behavioural shifts, frequency of use, and value per transaction to support ROI optimisation, product design, and targeted go-to-market strategies.