Prepaid Card Market in Sub-Saharan Africa & its Opportunities Analysed by BRICdata
01 Aug 2012 • by Natalie Aster
The prepaid cards market has slowly gained popularity in South Africa, as the organized retailers and vendors began to accept prepaid cards, with no processing fee. Furthermore, hoteliers and vehicle rental vendors have also started to accept prepaid cards for their service transactions. In addition, convenience will be the most important driver of the adoption of prepaid cards in South Africa. Demand from younger consumers is expected to play a vital role in the growth of the prepaid cards market over the forecast period. While simple eligibility criteria established by Nigerian banks is expected to support the sales of prepaid cards in the country.
As the majority of Nigerians do not have a bank account, Nigerian banks have established simple eligibility criteria so that more people can easily benefit from prepaid cards. Moreover, The Central Bank of Nigeria has implemented a new policy in Lagos to reduce the amount of physical cash such as notes and coins in rotation in the economy, while encouraging electronic-based transactions for the payment of goods and services.
The new report "Market Opportunities and Emerging Trends in the Prepaid Card Market in Sub-Saharan Africa" by BRICdata states that the prepaid cards market in Tanzania is more developed than that of Mozambique, Zambia and Botswana, however, younger consumers are expected to support further growth over the forecast period.
In Kenya, the prepaid card market is in its early stages of development and provides modest growth potential for new market entrants. A number of banks, including Kenya Commercial Bank, Investment and Mortgages Bank and Bank of Africa have begun to offer prepaid cards. The prepaid cards markets in other Sub-Saharan countries such as Tanzania, Mozambique, Zambia and Botswana are in their early stages of development and only a few companies have entered the respective markets.
Market Opportunities and Emerging Trends in the Prepaid Card Market in Sub-Saharan Africa
Published: June, 2012
Price: US$ 2.950,00
Key highlights of the report:
- For all the Sub-Saharan Countries, growth in macroeconomic indicators is expected to support the financial cards market. The overall economic growth in the Sub-Saharan Countries attracts investments in various sectors, which are also expected to support the growth of prepaid cards in these countries.
- The South African prepaid cards market grew significantly during the review period and this is expected to grow at a CAGR 63.59% over the forecast period. Such growth can be attributed to the projected social protection expenditure by the South African National Treasury, which is expected to pay wages to millions of South African through prepaid cards over the forecast period.
- The Nigerian prepaid cards market recorded a sizeable growth during the review period and this is expected to be stronger and grow at a CAGR 47.91% over the forecast period.
- Kenya’s prepaid cards market is projected to record a CAGR of -2.76% over the forecast period. The negative growth is mainly due to the increasing popularity of mobile payment services and a lack of technological infrastructure.
More information can be found in the report “Market Opportunities and Emerging Trends in the Prepaid Card Market in Sub-Saharan Africa" by BRICdata.
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