Business Research & Analysis
Global Open loop Prepaid cards have gained considerable traction among not only the unbanked consumers but also with banked and higher income group consumers primarily due to the convenience they offer, enabling consumers to ring-fence their expenses. Over the next four years, PayNXT360 expects global prepaid card market to cross US$ 2 trillion in transaction value terms. Banks as well as non-banking companies such as telecom operators and digital wallet providers are venturing into this space to create an additional revenue stream. Retail customers are the primary target group for card issuers, especially the millennials. Card companies are trying to increase their market share and create differentiation by adding new features to GPR cards, such as mobile integration, designing reward programs similar to credit cards, and leveraging technology to maximize reach.
For developing countries in Asia, Africa and Latin America, where a large portion of the population continues to be digitally and financially excluded, card issuers are rethinking their distribution strategy to reach the prospective consumers. GPR card issuers are collaborating with banking agents to reach the unbanked population at locations most convenient to them. Governments and central banks of emerging economies are encouraging creation of banking agents to reach customers in rural or remote areas to foster greater financial inclusion in their countries. For more Click here
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