Fintech companies turn to prepaid card innovation to expand their market share in the Middle East region

Print

Email

The Middle East region witnessed a rising adoption of digital payments over the past four to eight quarters, with the countries prioritizing digital innovation and customer-centric approaches. According to PayNXT360’s Q4 2021 Global Prepaid Cards Market Survey, the growth in the adoption of prepaid card payment methods in this region is primarily because of the rise in technology-driven products and services. Moreover, governments are persuading the consumers in the region to use cashless payment methods such as digital and mobile wallets, thereby supporting the growth of prepaid cards in the region.

Moreover, prepaid cards are also gaining traction among students, expatriate workers, and blue-collar service providers, as the payment solution offers a range of services such as sending remittances, payroll processing, gifting, government benefit disbursement, and several others. Consequently, the rising demand attracted more fintech companies to launch innovative prepaid instruments to expand their market share in the region. For instance,

• In February 2022, i2c Inc., a United States-based payments provider, introduced a digital-first prepaid mobile wallet in partnership with KARTY, a Qatar-based fintech firm providing digital financial solutions in the region. The customers will receive a Visa-powered digital card that will have features such as instant, cashless P2P transactions using i2c’s global payments platform and Karty’s mobile wallet. Additionally, the wallet provides the customer to develop better spending habits through data-backed financial management tools across a range of categories such as groceries, transportation, health care, and more.
• Mastercard in partnership with Bahrain-based Payment International Enterprise, launched Floss, a digital-first program that will offer financial services across Bahrain in February 2022. Customers will receive a virtual Mastercard prepaid card to be used for online transactions, in-stores payments, and ATM withdrawals. Through this Floss app/wallet, the customer can deposit, withdraw funds and track their purchases made. Moreover, customers can set reminders for bill payments, pay utility bill payments, telecom services, gift vouchers, calling cards through the app. Also, the customer does not require any bank account to enroll for the Floss card.
• Similarly, a new digital bank called LINC was launched in Jordan to support the country’s university students and young adults in February 2022. The fintech offers financial services, including prepaid cards together with international money transfers, and many other financial services. Notably, PayPal also partnered with LINC for instant P2P and bank account transfers. This neobank is a part of Cairo Amman Bank, a full-service bank in Jordan and Palestine.

Fintech companies are focusing on developing a business model eliminating cash and promoting digital paperless transactions in this region. Since the development of the domestic payment ecosystem is very important for building a robust digital economy, fintech firms are leveraging the growth of e-commerce and advancing financial inclusion in the millennial population to shape the future of these economies.

To know more and gain a deeper understanding of the prepaid card market in the Middle East, click here.