Over the last three to four years, the digital payment landscape has undergone a significant transformation in India. With the government's push towards a cashless economy, coupled with the widespread adoption of smartphones, digital payments have become ubiquitous among Indian consumers. Among the various digital payment methods, prepaid payment instruments such as prepaid cards have emerged as a popular choice, driving the growth of the digital payment industry in India.
Amid the growing popularity of prepaid cards, the number of new solution launches has also increased significantly over the last few years. To capitalize on the growing digital payment ecosystem in India, businesses across industry verticals are seeking to offer financial services to their customers. As a result, the number of prepaid cards launches are projected to further grow in 2023.
With the firm poised to expand across the country and globally from the short to medium-term perspective, the financial product launched by Coffee & More is also projected to gain widespread traction among its customers. This will further aid the competitive landscape in the fast-growing digital payments industry in India.
Currently, the digital payment ecosystem has the presence of several fintech firms and banking giants in India, all of which are vying for market share. Even these firms are resorting to prepaid cards to drive their revenue growth.
AeronPay has announced its plans to expand its presence in more Tier I and Tier II cities of India, which is expected to materialize over the next few quarters. This expansion strategy, coupled with the launch of financial products like prepaid cards and QR codes, is aimed at driving revenue growth for the firm. AeronPay, which began its operations with a revenue of INR 500,000, recently announced that the payment volumes have reached INR 30 billion. By 2025, the firm is targeting the total payment volume to cross INR 100 billion.
The growth in payment volumes for AeronPay, which began operations in 2018, is a clear indication that the digital payment market is growing at a rapid rate in India. PayNXT360 expects the trend to further continue over the next five years, driven by the availability of robust payment infrastructure and higher internet and smartphone penetration in Tier II, III, and IV cities.
As the popularity of prepaid cards continues to grow among consumers across different age groups and demographics, PayNXT360 expects more such prepaid card launches in the Indian market over the next three to four years. This, coupled with the entry of non-financial service providers into the segment, will also aid the launch of innovative prepaid payment instruments from the short to medium-term perspective.
Overall, the push from the Indian government and the innovative startup landscape in India will keep driving the growth of the digital payments market. This will subsequently aid the growth of the prepaid card industry in India from the medium to long-term perspective.
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