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

Embed prepaid into UPI-led payment behaviour

• New PPI issuance activity is increasingly positioned around everyday QR-led acceptance and UPI-linked usage (rather than “standalone wallet spend”). Recent regulatory approvals for new PPI issuers explicitly highlight UPI-linked wallet propositions (e.g., Junio’s in-principle authorisation narrative includes UPI-linked wallet usage).
• UPI remains the dominant consumer payment workflow, and PPI issuers are aligning their product design with the rails and controls customers already use. At the same time, RBI’s recent KYC alignment expectations for payment system providers/participants tighten the compliance baseline for onboarding and ongoing monitoring, pushing issuers toward “KYC-clean and interoperable” operating models.
• This trend is expected to intensify: PPIs that do not map cleanly to UPI-led acceptance will find it harder to stay active, while regulated, full-KYC, UPI-compatible PPIs will be used as “controlled-value” instruments for specific use cases (youth, corporate, targeted disbursements).

Shift prepaid growth toward controlled-spend and enterprise distribution

• Competitive energy is focusing on enterprise-led issuance, where prepaid is used for defined spend purposes (employee/partner payouts, benefits, incentives, expenses) rather than broad consumer prepaid expansion. A visible example is AU Small Finance Bank’s announced partnership with Zaggle to launch co-branded retail credit and prepaid cards, signalling continued bank-program-manager co-issuance to distribute prepaid at scale.
• Enterprises want auditability, limits, and policy controls; PPIs are structurally suited because value is pre-funded and can be governed. RBI’s Payment Aggregator (PA) Directions (Sep 2025) raise expectations for acceptance-chain governance and merchant onboarding, which pushes enterprise programs to rely on better-controlled distribution and compliant acceptance partners.
• Controlled-spend programs are likely to remain the most scalable lane for prepaid, with more co-issued programs and deeper integrations into HR/expense/travel tooling. Competitive differentiation will increasingly sit in compliance operations, reconciliation depth, and program-level risk controls rather than “new prepaid SKUs.”

Use partnerships and M&A to add capabilities faster than building end-to-end

• Platforms are using inorganic moves and partnerships to broaden their prepaid-led propositions into adjacent payment capabilities (e.g., consumer credit/UPI stack adjacency, cross-border spend tooling). Example: Zaggle’s acquisition of Rio. Money (announced in 2025) shows prepaid/spend managers buying capability to expand beyond a narrow-prepaid scope.
• Regulatory expectations and operating complexity (KYC, monitoring, disputes, acceptance-chain controls) make “build everything” slower and riskier; partnerships let issuers assemble compliant stacks with clearer accountability. NPCI and ecosystem risk actions (including changes aimed at reducing scams and enhancing system resilience) also incentivise players to harden their operations and partner for specialised capabilities.
• Partnership-led scaling is expected to intensify, and M&A will likely remain selective, focused on acquiring distribution, tech, or compliance-ready capabilities. This should increase concentration around a smaller set of scaled platforms that can sustain compliance and operational performance.

Tighten operating standards through updated KYC expectations and acceptance-chain regulation

• The “right-to-operate” bar is rising for PPI issuers and adjacent participants (PSPs, acceptance ecosystem players) due to consolidated, updated regulatory expectations. RBI’s 2025 KYC framework alignment communications explicitly call out payment system providers/participants and PPI issuers in the compliance perimeter, increasing scrutiny on onboarding and monitoring.
• Fraud/scam risks, along with concerns about ecosystem stability, are driving tighter governance. Separately, RBI’s PA Directions (Sep 2025) expand and consolidate requirements (including offline/physical acceptance coverage), which matters because many prepaid programs depend on PA-led merchant acceptance and onboarding discipline.
• Expect compliance costs and operational discipline to become more explicit competitive differentiators. Sub-scale operators are likely to lean into bank sponsorship, regulated partnerships, or exit marginal models.

Competitive Landscape of the India Prepaid Card (PPI) Market

Current state of prepaid card

• India’s prepaid competitive landscape is increasingly defined by regulated PPI issuance, UPI-aligned usage, and enterprise distribution. Recent in-principle approvals for new PPI issuers (e.g., Infibeam Avenues; Junio) show continued interest in entry, but under a tighter compliance perimeter.
• At the same time, operating expectations are rising across the payment ecosystem, affecting prepaid indirectly through the acceptance chain and KYC/monitoring requirements. RBI’s PA Directions (Sep 2025) and updated KYC alignment expectations (Nov 2025) reinforce that growth needs to be supported by stronger governance and onboarding discipline.

Key players and new entrants

• Bank-platform co-issuance and program manager models remain central for prepaid use in controlled-spend and enterprise programs. AU Small Finance Bank’s announcement of a partnership with Zaggle to launch co-branded retail credit and prepaid cards is a clear marker of this model continuing to scale through distribution partners.
• On the entrant side, new/expanded issuers are coming through RBI authorisation pathways rather than informal models. Infibeam Avenues’ in-principle authorisation to issue PPIs and Junio’s in-principle authorisation are examples of firms attempting to add PPI issuance into broader merchant/payment or consumer propositions.

Recent partnerships, merger and acquisitions

• Partnerships are being used to package prepaid inside broader cards-and-software propositions, especially for retail and enterprise distribution. AU Small Finance Bank and Zaggle’s announced alliance explicitly includes prepaid as part of a co-branded cards program roadmap.
• M&A is being used selectively to acquire capability and expand addressable flows. Zaggle’s announced acquisition of Rio. Money (2025) is a recent example of a prepaid/spend-management player buying into adjacent payment capability to widen product scope.

How the competitive landscape is expected to shape up (next 2-4 years)

• Competitive intensity is expected to rise, but the number of scaled operators may narrow as compliance and acceptance-chain requirements increase the operating burden. RBI’s PA Directions and KYC alignment expectations push issuers toward stronger governance, which typically advantages players with bank sponsorship, mature compliance operations, and proven distribution.
• Expect more “assembled” business models: issuers partnering to address acceptance, risk controls, and UPI/rail integrations, while focusing internally on distribution and program economics. NPCI actions aimed at system resilience and scam reduction also suggest continuing pressure on fraud controls and transaction governance, which will influence product design and servicing 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.

Report Scope

India 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

India Digital Wallet Market Size and Forecast

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

India 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)

India 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

India 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

India Open Loop Prepaid Card Future Growth Dynamics

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

India Closed Loop Prepaid Card Future Growth Dynamics

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

India Prepaid Card Consumer Usage Trends

• By Age Group
• By Income Group
• By Gender

India 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

India General Purpose Prepaid Card Market Size and Forecast

India 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

India Entertainment and Gaming Prepaid Card Market Size and Forecast

India 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

India 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

India 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

India 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

India 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

India Transit and Tolls Prepaid Card Market Size and Forecast

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

India Fuel Prepaid Cards Market Size and Forecast

India Utilities, and Other Prepaid Cards Market Size and Forecast

India 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

India 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 India’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 India’s payments ecosystem.
• Understand India’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 India specific prepaid and digital wallet strategies: Identify high-growth segments and structurally resilient use cases to support market-entry, expansion, or optimisation strategies. Evaluate India-specific drivers, constraints, and risks, including regulation, macroeconomic conditions, and adoption patterns, to inform realistic, market-aligned strategic decisions.
• Detailed analysis of India’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 India’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.