The emergence of innovative prepaid card solutions has accelerated the growth of the prepaid card market in Mexico. With a rising fintech industry coupled with a large unbanked population, Mexico is a country of contrasts. This creates a very thriving environment for the growth of digital payments.
The last four to eight quarters have witnessed a high usage of prepaid cards in the country. This can be attributed to the rising fintech and neobanks activity in the country. These firms are launching innovative, low-cost prepaid solutions to attract more customers, thereby boosting the prepaid card market in the country.
Another key driver of growth in the prepaid card market in Mexico is the usage of welfare cards offered by the government, such as transport cards, payroll cards, and gift cards. The publisher expects the prepaid card market to witness robust growth over the next four to six quarters in Mexico as the fintech firms keep exploring the market with their innovative product launches.
Digital payment providers are partnering with lending companies to launch prepaid card solutions in Mexico.
In Mexico, there is almost 40 million unbanked population. With the change in the payment trends in the country, fintechs are entering into strategic partnerships to launch prepaid card solutions with the intention of providing financial inclusion in the country.
Global players are expanding their prepaid card solutions in Mexico
The huge unbanked population, together with the transition towards cashless payments among consumers, have attracted global players to expand the prepaid card solutions in the country.
Source: El Financiero