Brazil is one of the largest prepaid card payments market in the world. The gross dollar value (GDV) of Brazilian prepaid card market increased at a CAGR 29.1% during the review period of 2011 to 2015, to reach USD 48.4 billion in 2015, and is expected to reach USD 116.4 billion by 2020, growing at a CAGR of 18.2% during the forecast period of 2016 to 2020. Prepaid cards are expected to record strong growth despite the economic slowdown in the country, mainly due to relatively low penetration levels of the cards, which PayNXT360 expects, will expand to non-metropolitan cities over the next five years.
Prepaid cards are being utilized in 2016 Olympic Games to be held in Rio de Janeiro in Brazil. Consumers can purchase the Olympic Game tickets through virtual prepaid cards using a dedicated website. The virtual prepaid card is e-mailed to buyers immediately, for free. Users can then load the virtual prepaid card through debit card, credit card, bank slip, and wire transfer and request for a physical card as well in addition to the virtual card. The card can be used to purchase Games tickets as well as make online and in-store purchases.
Telecom companies are partnering with banks and card payment networks to expand their service portfolio to include a greater range of financial services, such as prepaid payments. For instance, TIM, Brazil’s second largest mobile operator and Caixa Bank, in partnership with MasterCard launched TIM Multibank Caixa service in 2015, allowing customers to access their money on mobile devices. Using their mobile devices or a MasterCard prepaid card linked to their mobile phones, users of this service can make deposits, payments, and make purchases.
In order to target teens and millennials, card issuers have collaborated with universities in Brazil to launch prepaid student cards or campus cards that offer multiple functions such as, identity card for accessing campus facilities, withdrawing cash from ATMs, making payments in cafeteria, or making other low-value purchases.
Gift cards in Brazil are also posting strong growth, with high adoption being seen from corporates as well as retail customers. In an emerging trend, corporates are utilizing gift cards as part of a larger business strategy to expand customer base and subsequently increase sales.
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Announcing the ‘Prepaid Cards Market Intelligence’ series – “Brazil Prepaid Cards Business and Investment Opportunities – Market Size and Forecast (2011-2020), Targeting Strategies, Analysis of Business Trends, Consumer Attitude & Behaviour, Retail Spend, Market Risk, Competitive Landscape and Market Innovation”.
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