DUBLIN, April 11, 2023 /PRNewswire/ — The “Brazil Prepaid Card and Digital Wallet Business and Investment Opportunities Databook – Market Size and Forecast, Consumer Attitude & Behaviour, Retail Spend – Q1 2023 Update” report has been added to ResearchAndMarkets.com’s offering.
Brazil is leading the digital payment revolution in the Latin American region. The Brazilian government is promoting the growth of the prepaid card market through Pix, the instant payment platform launched by the central bank. Along with the growing transaction volume in the online segment, prepaid payment instrument penetration has also increased in the brick-and-mortar sector in 2022.
Innovative fintech firms and strategic collaborations with global payments providers are driving the growth of the prepaid card market in Brazil, and the trend is projected to further continue from the short to medium-term perspective. Furthermore, the investment from venture capital and private equity firms into the Brazilian fintech ecosystem will support the industry growth over the next three to four years.
New regulation on prepaid card interchange fees is expected to dampen revenue growth for fintech firms in Brazil
In September 2022, the Brazilian central bank announced a 0.7% limit for interchange fees on a prepaid cards that are provided by fintech firms to their users in the country. The new regulation, which is expected to come into effect in April 2023, is a major setback for the growing prepaid card industry in Brazil. At present, there is no limit set on prepaid card interchange fees.
For fintech firms interchange fees on the prepaid card represents a major chunk of their revenue. Nubank, one of the leading prepaid card providers in the country, earned 7% of its total revenue through interchange fees during the financial year that ended June 30. According to the firm, the overall revenue for the firm would have been affected by 2.9%, if the central bank enforced the cap during the year. PagSeguro Digital and Inter & Co are among the other players that will be impacted due to the cap on interchange fees on prepaid card transactions.
Notably, conventional banking institutions pressed the central bank to set a cap on interchange fees, amid the rise of fintech firms in the country. The bank’s debit card interchange fees will be capped at 0.5% per transaction under the new regulations announced by the central bank.
While the move will encourage more retailers and merchants to accept prepaid card payments, thereby driving transaction volume and value, it is will have a significant impact on the revenue of fintech firms.
Payment providers are seeking to boost financial inclusion through prepaid card launches in Brazil
Brazil is leading the Latin American digital payment revolution. Amid the growing shift to digital payment solutions, payment providers are launching innovative prepaid payment instruments. For instance,
-
In November 2022, AstroPay, the online payment solution provider, announced that the firm had entered into a strategic alliance with Mastercard. Under the partnership, the two firms have launched a prepaid card solution in Brazil, thereby allowing consumers to pay wherever Mastercard is accepted.
-
In December 2022, Pay4Fun, the leading e-wallet service in Brazil, announced that the firm has also launched a prepaid card solution in partnership with Pomelo. The prepaid card aims to drive financial inclusion in the country, and consumers can use the payment method around the world.
With the demand for such prepaid payment instruments growing among consumers, the publisher expects more such launches in the Brazilian market from the short to medium-term perspective.
Fintech firms are raising capital to further drive financial inclusion among young Brazilians
To teach young Brazilians about financial independence and drive financial inclusion, fintech firms target teens and Gen Z consumers. These firms are also raising capital to further accelerate their growth.
-
In August 2022, NG.CASH, a fintech firm based in Brazil, announced that the firm had raised US$10 million in a seed funding round, which was led by Andreesen Horowitz and Monashees. The firm, which provides a mobile wallet and prepaid card to young Brazilians aged 10 – 24, is planning to use the capital to further accelerate its growth while driving financial inclusion in the country. As of August 2022, the firm already has a strong user base of 900,000.
The publisher expects the firm to further raise a funding round over the next three to four years. However, NG.CASH is also expected to experience a decline in its revenue due to the interchange fee cap introduced by the central bank in Brazil.
According to the publisher, the prepaid card market (value terms) in Brazil increased at a CAGR of 7.5% during 2018-2022. Over the forecast period of 2023 to 2027, the market is expected to record a CAGR of 12.9%, increasing from US$23.57 billion in 2022 to reach US$44.01 billion by 2027.
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 Brazil. With over 100 KPIs at country level, this report provides comprehensive understanding of prepaid card and digital wallet card market dynamics.
-
Market dynamics: Provides a comprehensive view on size and structure, industry dynamics, market trends, consumer attitude and behaviour, and competitive landscape in prepaid card and digital wallet industry in Brazil.
-
Digital wallet segments: Provides value, volume and average value per transaction across 5 key spend categories in digital wallet. This includes retail, travel, entertainment and gaming, restaurant, and recharge and bill payment.
-
Open loop and closed loop prepaid cards: market estimates and forecasts to assess opportunities 13 open loop and closed loop prepaid market segments. Details four essential KPIs – number of cards in circulation, number of transactions, load value, and value of transactions.
-
Consumer attitude and behaviour: Drawing from proprietary survey results, this report identifies and interprets key prepaid KPIs, including spend by age, gender, and income level.
-
Retail spend: Breaks down retail spend across 11 categories to provide detailed insights on consumer behaviour and changing dynamics of prepaid card spend.
Scope
Brazil Digital Wallet Market Size and Forecast
-
Transaction Value Trend Analysis
-
Transaction Volume Trend Analysis
-
Average Value per Transaction
Brazil 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)
Brazil 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
Market Share Analysis by Prepaid Card Categories
Brazil Open Loop Prepaid Card Future Growth Dynamics
-
Transaction Value Trend Analysis
-
Transaction Volume Trend Analysis
-
Average Value per Transaction
-
Number of Cards
Brazil Closed Loop Prepaid Card Future Growth Dynamics
-
Transaction Value Trend Analysis
-
Transaction Volume Trend Analysis
-
Average Value per Transaction
-
Number of Cards
Brazil Prepaid Card Consumer Usage Trends
-
By Age Group
-
By Income Group
-
By Gender
Brazil General Purpose Prepaid Card Market Size and Forecast
Brazil – Gift Card Market Size and Forecast
-
Gift Card Market Size and Forecast by Functional Attribute
-
By Open Loop Gift Card
-
By Closed Loop Gift Card
-
Gift Card Market Size and Forecast by Consumer Segments
-
By Retail Consumer Segment
-
By Corporate Consumer Segment
-
Gift Card Market Share Analysis by Retail Categories
-
Gift Card Market Share Analysis by Gifting Occasion
-
Gift Card Market Share Analysis by Purchase Location
Brazil Entertainment and Gaming Prepaid Card Market Size and Forecast
Brazil Teen and Campus Prepaid Card Market Size and Forecast
Teen and Campus Prepaid Card Market Size and Forecast by Functional Attribute
Brazil Business and Administrative Expense Prepaid Card Market Size and Forecast
Business and Administrative Expense Prepaid Card Market Size and Forecast by Consumer Segments
-
By Small Scale Business Segment
-
By Mid-Tier Business Segment
-
By Enterprise Business Segment
-
By Government Segment
Brazil Payroll Prepaid Card Market Size and Forecast
Payroll Prepaid Card Market Size and Forecast by Consumer Segments
-
By Small Scale Business Segment
-
By Mid-Tier Business Segment
-
By Enterprise Business Segment
-
By Government Segment
Brazil Meal Prepaid Card Market Size and Forecast
Meal Prepaid Card Market Size and Forecast by Consumer Segments
-
By Small Scale Business Segment
-
By Mid-Tier Business Segment
-
By Enterprise Business Segment
-
By Government Segment
Brazil Travel Forex Prepaid Card Market Size and Forecast
Travel Forex Prepaid Card Market Size and Forecast by Consumer Segments
-
By Retail
-
By Small Scale Business Segment
-
By Mid-Tier Business Segment
-
By Enterprise Business Segment
-
By Government Segment
Brazil Transit and Tolls Prepaid Card Market Size and Forecast
Brazil Healthcare and Wellness Prepaid Card Market Size and Forecast
Brazil Social Security and Other Government Benefit Programs Prepaid Card Market Size and Forecast
Brazil Fuel Prepaid Cards Market Size and Forecast
Brazil Utilities, and Other Prepaid Cards Market Size and Forecast
Reasons to buy
-
In-depth understanding of prepaid card and digital wallet market dynamics: Understand market opportunity, industry dynamics, key trends and drivers across 75+ market segments and sub-segments of prepaid payment instrument in Brazil.
-
Develop market specific strategies: Identify growth segments and target specific opportunities to formulate your prepaid card and digital wallet strategy; assess market specific key trends, drivers and risks in the industry.
-
Get insights into consumer attitude and behaviour: Understand changing consumer attitude and behaviour and boost ROI. Get detailed insights into retail spend through prepaid cards and digital wallets.
For more information about this report visit https://www.researchandmarkets.com/r/lzx3rz
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world’s leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
Media Contact:
Research and Markets
Laura Wood, Senior Manager
[email protected]
For E.S.T Office Hours Call +1-917-300-0470
For U.S./CAN Toll Free Call +1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716
Logo: https://mma.prnewswire.com/media/539438/Research_and_Markets_Logo.jpg
SOURCE Research and Markets
link