India Prepaid Card and Digital Wallet Market 2023: Tokenization Can Accelerate the Digital Payments Adoption and Prepaid Card Market Growth – ResearchAndMarkets.com
DUBLIN–(BUSINESS WIRE)–The “India 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.
According to the publisher, the prepaid card market (value terms) in India increased at a CAGR of 18.4% during 2018-2022. Over the forecast period of 2023 to 2027, the market is expected to record a CAGR of 29.7%, increasing from US$35.69 billion in 2022 to reach US$134.59 billion by 2027.
The robust digital payments infrastructure, coupled with a high smartphone and internet penetration rate, has driven the prepaid card market in India. Government policies, the flourishing fintech sector, and the global pandemic outbreak has assisted industry growth in unprecedented ways. In H2 2022, the country recorded over 40 billion digital transactions.
The Unified Payments Interface (UPI) transaction volume and value have grown significantly year over year in Q3 2022. Mobile payment instruments, such as PhonePe, Google Pay, and Paytm, are leading the UPI transaction value and volume in the country.
The swift adoption of digital payments can be seen with each passing quarter in India, and the trend is expected to further continue from the short to medium-term perspective. Over the next three to four years, the growth in online shopping is expected to further accelerate the growth of the prepaid card market in India.
PhonePe and Google Pay stand to gain from the extension of the market share cap deadline to December 2024
To address the risks and protect the UPI ecosystem in India, the National Payments Corporation of India (NPCI) announced the market cap rules, thereby limiting any single prepaid payments instrument provider to process over 30% of UPI transactions in a month. However, taking into account the present usage and the potential future of UPI, NPCI has deferred the implementation of the market cap several times. In December 2022, NPCI again extended the market share cap deadline to December 2024.
Tokenization can accelerate the digital payments adoption and prepaid card market growth in India
India already has a robust digital payments infrastructure, which has played a pivotal role in the growth of the prepaid card market over the last three to four years. The prepaid card industry is projected to further growth, as India is poised to gain significantly from the proliferation of tokenization.
Tokenization offers two key benefits, including payment security and an enhanced checkout experience. With the tokens flowing through the payment systems without disclosing sensitive customer data or allowing payment aggregators or merchants to store customer data, consumers are better secured. As a result, more and more consumers are projected to adopt digital payments from the short to medium-term perspective in India.
Global fintech firms are entering the Indian market with their prepaid card offering to tap into the lucrative SME segment
Small and medium-sized enterprises (SMEs) are seen as the backbone of the Indian economy, offering vital services, jobs, and growth. It is also the sector that offers a vast untapped growth opportunity. Targeting the segment, global fintech firms are entering the country with their prepaid card services. For instance,
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 India.
- 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.
India Digital Wallet Market Size and Forecast
India Digital Wallet Market Size and Forecast by Key Segments
India Prepaid Card Industry Market Attractiveness
Market Share Analysis by Functional Attributes – Open Loop vs. Closed Loop
Market Share Analysis by Prepaid Card Categories
India Open Loop Prepaid Card Future Growth Dynamics
India Closed Loop Prepaid Card Future Growth Dynamics
India Prepaid Card Consumer Usage Trends
India General Purpose Prepaid Card Market Size and Forecast
India – Gift Card Market Size and Forecast
India Entertainment and Gaming Prepaid Card Market Size and Forecast
India Teen and Campus Prepaid Card Market Size and Forecast
Teen and Campus Prepaid Card Market Size and Forecast by Functional Attribute
India Business and Administrative Expense Prepaid Card Market Size and Forecast
Business and Administrative Expense Prepaid Card Market Size and Forecast by Consumer Segments
India Payroll Prepaid Card Market Size and Forecast
Payroll Prepaid Card Market Size and Forecast by Consumer Segments
India Meal Prepaid Card Market Size and Forecast
Meal Prepaid Card Market Size and Forecast by Consumer Segments
India Travel Forex Prepaid Card Market Size and Forecast
Travel Forex Prepaid Card Market Size and Forecast by Consumer Segments
India Transit and Tolls Prepaid Card Market Size and Forecast
India Healthcare and Wellness Prepaid Card Market Size and Forecast
India Social Security and Other Government Benefit Programs Prepaid Card Market Size and Forecast
India Fuel Prepaid Cards Market Size and Forecast
India Utilities, and Other Prepaid Cards Market Size and Forecast
For more information about this report visit https://www.researchandmarkets.com/r/a5t6od
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