By Card Type :

Based on the Card Type, the market is bifurcated into closed loop and open loop. The open loop holds the largest market share and is expected to grow at a significant growth rate. The open loop prepaid card offers users convenience & flexibility in making payments resulting in market growth of the segment. Further, with the growing trend of online shopping, open loop card has become a popular as secure and convenient payment options. Additionally, the open loop prepaid card offers several advantages including wider acceptance, cash withdrawal from ATMs, and international transactions among others. For instance, in July 2021, Mastercard, Mumbai Metro and Axis Bank launched the "One Mumbai Metro Card' which is a open loop prepaid card for contactless transactions. Thus, considering the overall trends the open loop market is anticipated to grow during the forecast period.

By Usage:

Based on the usage, the market is separated into general purpose card, gift cards, government benefit card, incentive card, and others. The general-purpose card holds the largest market share and is expected to grow at a significant growth rate. The versatility of the general-purpose card plays a key role in the growth of the market. The general-purpose card is used for various types of transactions including in-store purchases, bill payments, online shopping, and cash withdrawals among others. Additionally, the general-purpose card eliminates the need to carry cash or checks that further helps in driving the growth of the market. Thus, versatility of the general-purpose card is expected to drive the market growth of the prepaid cards during the forecast period.

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By End-User :

Based on the end user, the market is separated into retail, government institutions, corporate institutions, financial institutions, and others. The retail segmented accounted for the largest share in prepaid card market in 2022 and is anticipated to grow at highest CAGR. In the retail sector prepaid cars are commonly used for gifting purposes. The cards offer the use flexibility and convenience to choose the desired product as per requirement. Further, retailers often provide a range of prepaid gift cards allowing customers to select cards specific to a particular store or brand. For instance, in December 2020, PayNearby launched launch PayNearby Shopping Card to enable retail partners to derive maximum benefits through digital commerce. Additionally, retailers often use prepaid cards as a promotional tool to attract customers which further helps in driving the growth pf the market. Retailers offer prepaid cards as incentives for purchases or as loyalty rewards, which in turn helps in retaining the customers.

By Region :

The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

North America accounted for the largest revenue share in the year 2022. The growth is attributed to the increased adoption of technology which in turn leads to the increased demand for cashless payment solutions. Prepaid cards offer a secure and convenient alternative to the users for making cashless transactions. The card eliminates the need for carrying physical currency providing customers with a safer way to make purchases. In addition, the growth of the e-commerce industry in the region has resulted in significant growth of the prepaid card market. Prepaid cards ensure a secure online transaction through various e-commerce platforms without the need for conventional debit cards and credit cards. For instance, Netspend Corporation offers reloadable prepaid cards that offers convenience and control in making payments. The card also has several features including payback rewards and anytime alerts. Thus, owing to the above-mentioned trends the demand for prepaid cards is expected to grow.

Asia Pacific holds USD 544.61 billion in 2022 and is projected to reach USD 1,807.14 billion by 2030 with growing CAGR of 16.5% during the forecast period. The growth in the region is attributed to several factors including growing adoption of digital payments, growth in the e-commerce market, and government efforts in financial inclusion among others. The Asia pacific region has witnessed rapid increase in digital payment adoption with a shift in cashless transaction. Prepaid cards provide consumers with a convenient solution for making online payments and bill payments. Additionally, the governments in the region are taking several initiatives for financial inclusion which further drive the growth of the market. Overall considering the trends in the region the prepaid card market is expected to grow during the forecast period.