Middle East and Africa Prepaid Card Market - Growth, Trends, Covid-19 Impacts and Forecasts (2023-2028)

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

MEA 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.

MEA Prepaid Card Market Competitor Analysis

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.

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