The payment ecosystem in India is evolving, and the country is moving towards a cash-light economy owing to the regulatory changes, the government's Digital India vision, and RBI's constructive policies. Prepaid cards, UPI payments, QR codes, and NFC-based payments are a few noteworthy transformations in the payments industry. The prepaid card market in India is booming due to the increasing cashless payments, growing adoption of artificial intelligence (AI) and the Internet of Things (IoT), the rising eCommerce sector, and the growing number of the unbanked population.
According to PayNXT360, the Indian prepaid market value is increased at a CAGR of 19.9% from 2017 to 2021. The market value is expected to increase from US$ 35.69 billion in 2022 to US$ 105.43 billion by 2026 by recording a CAGR of 31.1% during the forecast period. Increasing urbanization, low cost of domestic airfares, and rising per capita income have led to the increasing adoption of prepaid travel cards in the country. Additionally, many companies offer prepaid meal cards, such as Sodexo and Zeta, as part of employee benefit schemes.
Recent developments in the Indian prepaid card market:
The prepaid cards market is exponentially growing with the increasing usage of gift cards, travel cards, meal cards, and payroll cards. In payroll cards, organizations using open-loop cards that allow salaries to be credited to cardholder's accounts in real-time are gaining much attraction. In addition, prepaid cards are one of the most popular payment methods for government benefits as they are cost-effective and provide greater flexibility to recipients when they can access their benefits. The major players in this space are actively involved in product innovations and collaborations with API platforms to provide their users with easy and multipurpose payment options.
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