DUBLIN, Nov. 15, 2021 — The «Mexico Prepaid Cards Business and Investment Opportunities – Market Size and Forecast (2016-2025), Consumer Attitude & Behaviour, Retail Spend, Market Risk» report has been added to ResearchAndMarkets.com’s offering.
According to the Q2 2021 Global Prepaid Card Survey, prepaid card market in the Mexico is expected to grow by 23.2% on annual basis to reach US$ 22,672.4 million in 2021.
The prepaid card market expected to grow over the forecast period, recording a CAGR of 16.8% during 2021-2025. The prepaid card market in Mexico will increase from US$ 18,397.8 million in 2020 to reach US$ 34,261.9 million by 2025.
The use of prepaid cards has increased over the last few quarters in Mexico, primarily because of the arrival of innovative, low-cost prepaid solutions launched by FinTech and neobanks in the country.
The growth in the segment is also driven by the welfare cards offered by the Mexican government, transport cards, payroll cards, and gift cards. The publisher expects the prepaid card segment to post a robust growth rate over the next four to six quarters, as FinTech firms keep innovating with their prepaid card launches.
Strategic partnerships are rising to launch innovative prepaid cards in Mexico:
Mexico had an estimated unbanked population of 40 million; however, the growth in FinTech adoption has led to a radical change in the consumption methods of consumers in the country. As a result, FinTech firms are entering into strategic partnerships to launch innovative prepaid card solutions for boosting financial inclusion in Mexico. For instance,
In August 2021, i2c, which offers digital and banking technology, entered into a strategic partnership with customer loyalty program PAYBACK and lending company KEO to provide Mexican consumers prepaid AMEX cards.
Regional companies are expanding their reach in the Mexican prepaid card market:
As the global pandemic fueled the demand for cashless payment options among consumers in the country, Argentina-based FinTech firm, Uala, which has already issued more than 2.5 million prepaid cards in Argentina, launched its services in Mexico in September 2020. Since its launch, Uala has issued more than 100,000 prepaid cards in less than six months of its operations in Mexico. Consumers can use the prepaid MasterCard for online and in-store purchases.