Mexico’s Prepaid Cards Market Size

1. Site Title ~ Posted on February 15, 2017 ` Mexico’s prepaid card market to reach US$ 29.7 billion by 2021 M payroll cards are drivingthe open loop prepaid cards’ growth in Mexico, whereas transport cards and e x i c o i s t h e s e c o n d - l a r g e s t e c o n o m y i n L a t i n A m e r i c a , a f t e r B r a z i l a n d h a s a strong growth potential for Mexico prepaid cards market. Government-issued benefits cards and merchant issued gift cards dominate the closed loop prepaid card category. The prepaid card market in Gross Dollar Value terms increased at a CAGR of 29% during 2012-2016. Over the forecast period of 2017 to 2021, the category is expected to record a CAGR of over 20% to reach US$ 29.7billion by 2021. As per The World Bank’s Financial Inclusion Data / Global Findex, only about 40% of Mexicans aged more than 15 years have bank accounts. This low rate of financial inclusion can be attributed to the fact that about 55% of municipalities in Mexico do not have even a single bank or microfinance institution branch. The Mexican Government is focusing on enhancing financial inclusion in the country through its Financial Inclusion Strategy which seeks to achieve the objective by creating new laws and regulations or amending existing ones, to facilitate private financial services institutions to develop products and services that expand financial reach. Prepaid card issuers can therefore benefit from the initiative to introduce new and innovative products in the market. The Mexican government is also encouraging prepaid card use by utilizing the card category to disburse social benefits. The Mexican economy had to cope with challenges in 2015 that included lower oil prices, depreciating peso vis-à-vis the US dollar, and an overall difficult global economic environment, that led to lower than expected pace of economic recovery. In the coming few years as well the complicated global environment is likely to contain Mexico’s economic growth prospects to a moderate annual rate of growth.PayNXT360’s Global Consumer Survey suggests that in many emerging economies, consumers’ adoption of prepaid cards such as general purpose reloadable (GPR) cards, increases during an economically uncertain time. For instance, in Brazil as well as Italy it was observed that consumers, even those belonging to banked and higher income groups opted for GPR cards to budget their spending and limit fraud potential. With economic uncertainty expected to continue in Mexico, card issuers can promote GPR cards for retail customers as an expense management tool that is both convenient and secure to use. During an economically uncertain time businesses also come under pressure to control their costs and streamline their business operations to improve sustainability and competitiveness. Corporate prepaid cards such as business expense cards, payroll cards, and converted by Web2PDFConvert.com

2. procurement cards, which help businesses achieve theseobjectives, have significant growth opportunity in the country. Mexico has a significant youth population. The country’s median age is estimated to be 27.3 years, with about 45% of population being under 24 years of age and about 33% of population (almost 40 million people) is between 12 and 29 years of age. This demographic constitutes an important target group for prepaid card issuers. Mexican millennials are highly digital, attributing to more than 50% of the country’s total online population and close to 60% of them owns a smartphone. According to PayNXT360’s Global Consumer Survey results,millennialsare one of the key drivers for prepaid card adoption. This trend is expected to hold true for Mexico as well where the digital savvy millennials are likely to be at forefront of driving prepaid card adoption. Share this: Twitter Facebook Google    Loading... Related ​Prepaid cards is steadily growing popular in Middle East countries Australian Gift card transaction value to reach US$ 2.8 billion by 2020; share of digital gift cards is increasing rapidly Tightening US prepaid card regulation – how will it impact growth? Tagged Mexico prepaid cards P R E V I O U S A R T I C L E Australian Gift card transaction value to reach US$ 2.8 billion by 2020; share of digital gift cards is increasing rapidly Leave a Reply converted by Web2PDFConvert.com

3. Enter your comment here... T E X T W I D G E T This is a text widget, which allows you to add text or HTML to your sidebar. You can use them to display text, links, images, HTML, or a combination of these. Edit them in the Widget section of the Customizer. S E A R C H Search … S E A R C H Create a free website or blog at WordPress.com. FLTI converted by Web2PDFConvert.com