Africa Prepaid Card and Digital Wallet Market Intelligence and Future Growth Dynamics Databook - Q2 2025 Update

Key Trends and Drivers in the Africa Region Prepaid Cards Sector

Expansion of Digital Wallets and Prepaid Card Usage

• The adoption of digital wallets linked to prepaid cards is increasing across Africa. For instance, in South Africa, SOLmate reported a 100% annual increase in its user base, reaching a million transactions in December 2023. Similarly, Nigeria's Wallets Africa has over 250,000 users and launched a multi-currency wallet, Spring, in October 2023.
• A significant portion of Africa's population remains unbanked or underbanked, creating a demand for accessible financial services. Fintech companies are addressing this gap by offering digital wallets and prepaid cards, enabling users to perform online transactions, receive salaries, and transfer funds without traditional bank accounts.
• The trend is expected to intensify, with fintech firms expanding their services and user bases. As digital payment adoption grows, the prepaid card market in Africa is projected to experience substantial growth, driven by increased financial inclusion efforts.

Growth in Teen-Focused Prepaid Card Solutions

• There is a rising focus on prepaid card solutions tailored for teenagers in Africa. Startups such as Zywa have emerged, offering prepaid cards and mobile apps to help teenagers manage and save money. Zywa raised $3 million in a seed funding round in August 2022 and operates in countries including Egypt, with plans to expand to Saudi Arabia.
• This trend is driven by the increasing financial literacy among younger populations and the need for financial products that cater to the Gen Z demographic. Parents and guardians are seeking tools to teach financial management to teenagers while providing them with controlled spending options.
• The market for teen-focused prepaid cards is expected to grow, with more startups entering the space and existing firms expanding their offerings. Strategic collaborations with global payment networks are likely to enhance the reach and functionality of these products.

Integration of Prepaid Cards with Mobile Money Platforms

• Telecommunications companies integrate prepaid cards with mobile money platforms to enhance financial services.
• The widespread use of mobile money services in Africa provides a foundation for integrating prepaid card functionalities. Such integrations offer users greater convenience and access to international transactions, bridging the gap between mobile money and global payment systems.
• This trend is expected to strengthen, with more telecom operators collaborating with financial institutions to offer integrated prepaid card solutions. This will likely enhance cross-border transactions and provide users with more versatile payment options.

Competitive Landscape of the Africa Region Prepaid Card Market

Current Market Dynamics

• The prepaid card market in Africa is experiencing rapid expansion, driven by increasing financial inclusion initiatives and the rising adoption of digital payment solutions. As many consumers remain unbanked or underbanked, prepaid cards provide a convenient and accessible alternative to traditional banking services. Government policies aimed at promoting cashless economies, especially in markets such as Nigeria, Kenya, and South Africa, further reinforce this trend.
• The growing use of prepaid cards in e-commerce, payroll systems, and government disbursements is accelerating adoption across different consumer segments. The expansion of mobile payment platforms integrating prepaid card functionalities also contributes to the sector’s growth.

Key Players and Market Share

• The prepaid card market in Africa features a mix of well-established financial institutions and emerging fintech startups, creating a highly competitive landscape. Global players such as Visa and American Express continue to strengthen their presence through strategic partnerships with African banks and fintech firms. Meanwhile, regional banking institutions such as Access Bank Plc and Capitec Bank have introduced prepaid card solutions to cater to the growing demand for digital payments.

Recent Launches and Partnerships

• Strategic partnerships and acquisitions have played a crucial role in shaping the prepaid card landscape in Africa. Companies are collaborating to expand their distribution networks and enhance product offerings, leading to increased competition and consumer choices. For instance, Shoprite introduced a grocery gift card program to boost vaccination efforts, while Pick n Pay launched reloadable gift cards to provide consumers with more flexible payment options.
• Additionally, fintech firms and retailers are forming alliances to enhance the reach and utility of prepaid cards. These strategic moves indicate a growing demand for prepaid card solutions across various industries.

Anticipated Market Evolution (Next 2-4 Years)

• The prepaid card market in Africa is expected to become increasingly competitive as financial institutions and fintech startups seek to expand their market share. With continued investment in digital infrastructure and payment technologies, prepaid card services will become more sophisticated, offering additional security features, multi-currency support, and enhanced integration with mobile wallets.
• Regulatory oversight will continue to shape the industry, influencing how companies design and distribute prepaid card solutions. As new entrants emerge and existing players refine their services, competition will drive innovation in loyalty programs, cross-border payment solutions, and prepaid card-linked financial products. The market will likely see increased adoption, particularly in sectors such as remittances, online commerce, and corporate payroll systems.

Regulatory Changes

• Regulatory changes in the prepaid card industry across Africa aim to improve transparency and consumer protection. In South Africa, recent reforms require extended expiry periods for gift cards, preventing unfair practices that limit consumer benefits. These regulations also mandate clearer fee structures, reducing hidden charges and improving consumer trust in prepaid card services.
• Across the continent, financial authorities are introducing guidelines to prevent fraud and money laundering associated with prepaid cards. Countries such as Kenya and Nigeria have tightened Know Your Customer (KYC) and anti-money laundering (AML) regulations for prepaid card issuers. These changes are expected to create a more secure and reliable prepaid card ecosystem while ensuring compliance with global financial standards.

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.

This title is a bundled offering, combining one regional and 5 country reports (tables 666, figures 816):

• Africa Prepaid Card and Digital Wallet Business and Investment Opportunities Databook
• Egypt Prepaid Card and Digital Wallet Business and Investment Opportunities Databook
• Kenya Prepaid Card and Digital Wallet Business and Investment Opportunities Databook
• Nigeria Prepaid Card and Digital Wallet Business and Investment Opportunities Databook
• South Africa Prepaid Card and Digital Wallet Business and Investment Opportunities Databook

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 Africa’s prepaid card and digital wallet market dynamics: Understand market opportunity, industry dynamics, key trends and drivers across 80+ market segments and sub-segments of prepaid payment instrument, prepaid card, digital wallet and virtual prepaid card.
• Understand Africa’s market opportunities and key trends along with forecast (2020-2029). Understand market dynamics through essential KPIs such as transaction value, transaction volume, and average value per transaction.
• Develop Africa’s market specific strategies: Identify growth segments and target specific opportunities to formulate your prepaid card and digital wallet strategy; assess market specific key trends, drivers and risks in the industry.
• Detailed analysis of Africa’s market share by key players across key prepaid card categories.
• Get insights into Africa’s consumer attitude and behaviour: Understand changing consumer attitude and behaviour and boost ROI. Get detailed insights into retail spend through prepaid cards, virtual prepaid cards and digital wallets.