Brazil Prepaid Card and Digital Wallet Report 2024 – A $44.01 Billion Market by 2028, at a Compound Annual Growth Rate of 12.9% During 2024-2028
Dublin, May 22, 2024 (GLOBE NEWSWIRE) — The “Brazil Prepaid Card and Digital Wallet Business and Investment Opportunities Databook – Market Size and Forecast, Consumer Attitude & Behaviour, Retail Spend – Q1 2024 Update” report has been added to ResearchAndMarkets.com’s offering.
The prepaid card market in Brazil increased at a CAGR of 7.5% during 2019-2023. Over the forecast period of 2024 to 2028, the market is expected to record a CAGR of 12.9%, increasing from US$23.57 billion in 2023 to reach US$44.01 billion by 2028.
The adoption of digital payment solutions, including prepaid cards and mobile wallets, is growing rapidly in Brazil. The trend is expected to continue further in 2024, as the unbanked and underbanked consumers are flocking towards innovative solutions offered by fintech firms. In Brazil, digital payment platforms are also integrating other digital wallets to expand their service portfolio.
The growing innovation in the sector is, therefore, expected to drive the competitive landscape in the Brazilian prepaid card market. The trend of strategic partnerships is also expected to gain momentum in 2024, as firms seek to tap into the growing market. However, Binance and Mastercard parted ways in 2023, marking the end of the popular crypto prepaid card offering in Brazil. Overall, a positive growth outlook is forecast for the prepaid card industry over the next three to four years.
Digital payment platforms are integrating popular digital wallets to expand their service portfolio in the Brazilian market
Amid the growing demand for digital payment solutions among consumers across age groups, digital payment platforms are integrating popular digital wallets to expand and accelerate their revenue growth.
PicPay, in October 2023, added support for Apple Pay, Google Pay, and Samsung Wallet digital wallets. This means users can now use their smartphones or smartwatches to make purchases through PicPay Card without needing a physical card. The integration of these digital wallets is part of PicPay’s plan to offer more services. This move follows PicPay’s recent acquisition of Banco Original’s retail division, which has sped up several projects, including this one.
From the short to medium-term perspective, more such digital payment platforms are expected to integrate popular digital wallets, thereby driving the competitive landscape in the sector. This will subsequently support the growth of the broader prepaid card industry in Brazil over the next three to four years.
Binance and Mastercard end prepaid card offerings in the Latin American region, including Brazil
Binance, in September 2023, discontinued the prepaid card offering launched in partnership with Mastercard in Brazil. The Crypto prepaid cards, notably, were one of the most popular products offered in the Latin American region. At the time of the launch, it was also seen as a potentially new strategy for the crypto giant to drive its growth in the region.
The decision to part ways with Mastercard comes at a time when the exchange is facing tough legal battles in the United States. In June 2023, regulators took legal action against Binance, claiming it is involved in deceptive practices. However, Binance has refuted any such practices.
Debit cards have been important in getting more people to use cryptocurrencies. Many crypto platforms have started offering these cards in the last few years. The payment solution acts as a bridge between the digital crypto world and the regular economy, letting users buy things in stores and online. Binance’s choice to stop offering Mastercard debit cards has worried people in the crypto community. This move has raised concerns because cryptocurrencies are becoming more popular for everyday transactions.
Firms are expanding their product offerings with the launch of prepaid cards to aid revenue growth
To diversify revenue growth, firms are seeking to tap into the growing popularity of prepaid cards in Brazil. This trend is resulting in new product launches driving the competitive landscape in the industry.
Jeeves, the financial services firm backed by investors like Andreessen Horowitz, CRV, and Tencent, announced the launch of new product offerings including prepaid cards and cross-border payments. The firm launched the two new products in 2023. This is part of the strategy to diversify revenue growth, while further strengthening its position in the financial services sector. Jeeves initially launched operations with corporate credit cards. However, the soaring demand for cross-border payments has led to the launch of these new products. The solutions will enable customers to move funds in and out of various Latin American markets, such as Brazil, Colombia, and Mexico.
Report Scope:
This report provides a detailed data centric analysis of prepaid payment instruments, covering spend through prepaid cards and digital wallets across retail and corporate consumer segments. In addition, it provides a snapshot of consumer behaviour and retail spend dynamics in Brazil. With over 100 KPIs at country level, this report provides comprehensive understanding of prepaid card and digital wallet card market dynamics.
- Market dynamics: Provides a comprehensive view on size and structure, industry dynamics, market trends, consumer attitude and behaviour, and competitive landscape in prepaid card and digital wallet industry.
- Digital wallet segments: Provides value, volume and average value per transaction across 5 key spend categories in digital wallet. This includes retail, travel, entertainment and gaming, restaurant, and recharge and bill payment.
- Open loop and closed loop prepaid cards: market estimates and forecasts to assess opportunities 12 open loop and closed loop prepaid market segments. Details four essential KPIs – number of cards in circulation, number of transactions, load value, and value of transactions.
- Virtual Prepaid Cards: Provides transaction value analysis across 12 key prepaid card catergories for Virtual Prepaid Cards.
- Detailed Market Share Analysis by Key Players in the Prepaid Card Market.
- Consumer attitude and behaviour: Drawing from proprietary survey results, this report identifies and interprets key prepaid KPIs, including spend by age, gender, and income level.
- Retail spend: Breaks down retail spend across 11 categories to provide detailed insights on consumer behaviour and changing dynamics of prepaid card spend.
For more information about this report visit https://www.researchandmarkets.com/r/53lifb
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