Brazil Prepaid Card and Digital Wallet Business and Investment Opportunities Databook – Market Size and Forecast, Consumer Attitude & Behaviour, Retail Spend - Q1 2024 Update

According to PayNXT360, the prepaid card market (value terms) in Brazil increased at a CAGR of 7.5% during 2019-2023. Over the forecast period of 2024 to 2028, the market is expected to record a CAGR of 12.9%, increasing from US$23.57 billion in 2023 to reach US$44.01 billion by 2028.

The adoption of digital payment solutions, including prepaid cards and mobile wallets, is growing rapidly in Brazil. PayNXT360 expects the trend to continue further in 2024, as the unbanked and underbanked consumers are flocking towards innovative solutions offered by fintech firms. In Brazil, digital payment platforms are also integrating other digital wallets to expand their service portfolio.

The growing innovation in the sector is, therefore, expected to drive the competitive landscape in the Brazilian prepaid card market. The trend of strategic partnerships is also expected to gain momentum in 2024, as firms seek to tap into the growing market. However, Binance and Mastercard parted ways in 2023, marking the end of the popular crypto prepaid card offering in Brazil. Overall, PayNXT360 maintains a positive growth outlook for the prepaid card industry over the next three to four years.

Digital payment platforms are integrating popular digital wallets to expand their service portfolio in the Brazilian market

Amid the growing demand for digital payment solutions among consumers across age groups, digital payment platforms are integrating popular digital wallets to expand and accelerate their revenue growth.

• PicPay, in October 2023, added support for Apple Pay, Google Pay, and Samsung Wallet digital wallets. This means users can now use their smartphones or smartwatches to make purchases through PicPay Card without needing a physical card. The integration of these digital wallets is part of PicPay's plan to offer more services. This move follows PicPay's recent acquisition of Banco Original's retail division, which has sped up several projects, including this one.

From the short to medium-term perspective, PayNXT360 expects more such digital payment platforms to integrate popular digital wallets, thereby driving the competitive landscape in the sector. This will subsequently support the growth of the broader prepaid card industry in Brazil over the next three to four years.

Binance and Mastercard end prepaid card offerings in the Latin American region, including Brazil

Binance, in September 2023, discontinued the prepaid card offering launched in partnership with Mastercard in Brazil. The Crypto prepaid cards, notably, were one of the most popular products offered in the Latin American region. At the time of the launch, it was also seen as a potentially new strategy for the crypto giant to drive its growth in the region.

• The decision to part ways with Mastercard comes at a time when the exchange is facing tough legal battles in the United States. In June 2023, regulators took legal action against Binance, claiming it is involved in deceptive practices. However, Binance has refuted any such practices.

Debit cards have been important in getting more people to use cryptocurrencies. Many crypto platforms have started offering these cards in the last few years. The payment solution acts as a bridge between the digital crypto world and the regular economy, letting users buy things in stores and online. Binance's choice to stop offering Mastercard debit cards has worried people in the crypto community. This move has raised concerns because cryptocurrencies are becoming more popular for everyday transactions.

Firms are expanding their product offerings with the launch of prepaid cards to aid revenue growth

To diversify revenue growth, firms are seeking to tap into the growing popularity of prepaid cards in Brazil. This trend is resulting in new product launches driving the competitive landscape in the industry.

• Jeeves, the financial services firm backed by investors like Andreessen Horowitz, CRV, and Tencent, announced the launch of new product offerings including prepaid cards and cross-border payments. The firm launched the two new products in 2023. This is part of the strategy to diversify revenue growth, while further strengthening its position in the financial services sector. Jeeves initially launched operations with corporate credit cards. However, the soaring demand for cross-border payments has led to the launch of these new products. The solutions will enable customers to move funds in and out of various Latin American markets, such as Brazil, Colombia, and Mexico.

Over the medium term, PayNXT360 expects more such financial services firms to launch prepaid card solutions, as they seek to tap into the growing popularity of the payment method in Brazil. This will subsequently support the broader industry growth over the next three to four years.

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 South Korea.

• 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 12 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.

• Virtual Prepaid Cards: Provides transaction value analysis across 12 key prepaid card catergories for Virtual Prepaid Cards.

• Detailed Market Share Analysis by Key Players in the Prepaid Card Market.

• 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. • 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,Prepaid Card, Digital Wallet and Virtual Prepaid Card in Brazil.

• Understand market opportunities and key trends along with forecast (2019-2028). Understand market dynamics through essential KPIs such as Transaction Value, Transaction Volume, and Average Value Per Transaction.

• 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.

• Detailed analysis of market share by key players across key Prepaid Card Categories.

• 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, virtual prepaid cards and digital wallets.

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.

Brazil Prepaid Payment Instrument Market Size and Forecast

• Transaction Value Trend Analysis

• Transaction Volume Trend Analysis

• Average Value per Transaction

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 Digital Wallet Spend by Key Retail Categories

• Food and Grocery

• Health and Beauty Products

• Apparel and Foot Wear

• Books,Music and Video

• Consumer Electronics

• Pharmacy and Wellness

• Gas Stations

• Restaurants and Bars

• Toys, Kids and Baby Products

• Services

• Other Categories

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

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 Market Share by Key Players

•General Purpose Prepaid Cards

• Business and Administrative Expense Prepaid Cards

•Travel Forex Prepaid Cards

•Meal Prepaid Cards

Brazil Prepaid Card Consumer Usage Trends

• By Age Group

• By Income Group

• By Gender

Brazil Prepaid Card Spend by Key Retail Categories

• Food and Grocery

• Health and Beauty Products

• Apparel and Foot Wear

• Books,Music and Video

• Consumer Electronics

• Pharmacy and Wellness

• Gas Stations

• Restaurants and Bars

• Toys, Kids and Baby Products

• Services

• Other Categories

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

• By Open Loop Teen and Campus Prepaid Card

• By Closed Loop Teen and Campus Prepaid Card

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

Brazil Virtual Prepaid Card Industry Market Attractiveness

• Transaction Value Trend Analysis

• Transaction Volume Trend Analysis

• Average Value per Transaction

Brazil Virtual Prepaid Card Market Size and Future Growth Dynamics by Key Categories

• General Purpose Prepaid Cards

• Gift Cards

• Entertainment and Gamind Prepaid Cards

• Teen and Campus Prepaid Cards

• Business and Administrative Expense Prepaid Cards

• Payroll Prepaid Cards

• Meal Prepaid Cards

• Travel Forex Prepaid Cards

• Transit and Trolls Prepaid Cards

• Social Security and Other Government Benefit Programs Prepaid Cards

• Fuel Prepaid Cards

• Utilities and Other Prepaid Cards