Mexico Prepaid Card and Digital Wallet Markets and Investment Opportunities Report 2022: Global Players are Expanding their Prepaid Card Solutions in Mexico
The prepaid card market (value terms) in Mexico increased at a CAGR of 11.7% during 2017-2021. Over the forecast period of 2022 to 2026, the market is expected to record a CAGR of 14.6%, increasing from US$19.57 billion in 2022 to reach US$33.80 billion by 2026.
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 Mexico. With over 100 KPIs at country level, this report provides comprehensive understanding of prepaid card and digital wallet card market dynamics.
Emergence of innovative prepaid card solutions has accelerated the growth of the prepaid card market in Mexico. With a rising fintech industry coupled with a large unbanked population, Mexico is a country of contrasts. This creates a very thriving environment for the growth of digital payments.
The last four to eight quarters have witnessed a high usage of prepaid cards in the country. This can be attributed to the rising fintech and neobanks activity in the country. These firms are launching innovative, low-cost prepaid solutions to attract more customers, thereby boosting the prepaid card market in the country.
Another key driver of growth in the prepaid card market in Mexico is the usage of welfare cards offered by the government, such as transport cards, payroll cards, and gift cards. The publisher expects the prepaid card market to witness robust growth over the next four to six quarters in Mexico as the fintech firms keep exploring the market with their innovative product launches.
Digital payment providers are partnering with lending companies to launch prepaid card solutions in Mexico
In Mexico, there is almost 40 million unbanked population. With the change in the payment trends in the country, fintechs are entering into strategic partnerships to launch prepaid card solutions with the intention of providing financial inclusion in the country.
In August 2021, Mexico-based i2c, a digital payment provider partnered with KEO, a lending company and Mexican customer loyalty program PAYBACK to launch KEO PAYBACK American Express Card, a prepaid card solution,
This new card will help customers to access a financial alternative that will enable them to build credit history.
Moreover, this prepaid card will provide customers to receive the benefits of the loyalty program and also access the American Express network for both online and international purchases.
The customers will be provided quick credit approval on the basis of the underwriting process done, and they will not require any credit check or paperwork for the same.
Global players are expanding their prepaid card solutions in Mexico
The huge unbanked population, together with the transition towards cashless payments among consumers, have attracted global players to expand the prepaid card solutions in the country.
In November 2021, Tipalti, a global payables automation company, announced a partnership with a leading global prepaid card payment solution, Intercash, to expand their prepaid debit card solutions for international payees and partners.
The partnership will allow Tipalti users to use Intercash prepaid debit cards in 192 countries, including Latin America and Southeast Asia.
This Tipalti Intercash prepaid debit card is a Mastercard that can be used for online and offline transactions and also at ATMs for immediate purchases and cash withdrawals.
This prepaid card is an alternative payment option for especially for the unbanked and underbanked population. Moreover, it is helpful for those companies that rely on partners in countries and regions with limited financial infrastructure.
Mexican digital wallets are raising funds to expand their business
In May 2021, Mexico-based blockchain and bank-connected digital wallet, Airtm, attracted US$15 million investments from Stellar Development Foundation.
The funds will be used by Airtm to develop its platform through integration with Stellar, which will make its payment services more seamless, cost-effective, and safe.
The publisher expects, with this integration between two platforms, consumers and businesses across Latin America and other emerging markets, which is catered by Airtm, will be benefitted from stable money transfers.
Scope
Mexico Digital Wallet Market Size and Forecast
Transaction Value Trend Analysis
Transaction Volume Trend Analysis
Average Value per Transaction
Mexico Digital Wallet Market Size and Forecast by Key Segments
Retail Shopping (Value, Volume, Avg. Value)
Travel (Value, Volume, Avg. Value)
Entertainment and Gaming (Value, Volume, Avg. Value)
Restaurant (Value, Volume, Avg. Value)
Recharge and Bill Payment (Value, Volume, Avg. Value)
Mexico 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, 2016 - 2025
