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Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: International Prepaid Market Developments and Growth Trends
Financial Inclusion Varies By Region:
- 93.81% of consumers ages 15+ have a bank account in North America.
- This makes North America the leading region when it comes to financial inclusion.
- In second place is Europe, where 81.46% of consumers ages 15+ have a bank account.
- In third is Asia, where 72.66% of consumers ages 15+ have a bank account.
- Lagging behind is Latin America, where just 55.14% of consumers ages 15+ have a bank account.
- Despite low levels of financial inclusion, cashless payments are rising in popularity in emerging economies.
Mercator Advisory Group’s most recent report, International Prepaid Market Developments and Growth Trends, reveals some of the most important trends within the global prepaid market.
The international prepaid market is booming, but it is not expanding at the same rate everywhere. In emerging markets in Latin America and Asia, where consumers have more limited access to other forms of cashless payments, prepaid cards serve an important role in daily life. As e-commerce and demand for non-cash payment types rises in these regions, prepaid cards are experiencing profound growth.
On the other hand, in regions where prepaid markets are well established—namely Europe and North America—legislators are cracking down on fraud associated with prepaid cards. New regulations may threaten the growth of prepaid card markets in these regions.
Across all regions, prepaid card markets have found new use cases in recent times and there is a great deal more growth to be had within the market.
“The prepaid market is witnessing sustained and significant growth throughout the world, with an average estimated CAGR of 13% through the year 2023. As e-commerce spreads globally and demand grows for cashless payment methods, prepaid cards stand to benefit. Government initiatives in support of transitions to cashless payments are numerous,” states Laura Handly, analyst at Mercator Advisory Group, and the author of the report.