United Arab Emirates Prepaid Card and Digital Wallet Market Report 2023-2027: Prepaid Payment Instrument Providers are Raising Funding Rounds to Further Accelerate their Growth
DUBLIN, Nov. 24, 2023 /PRNewswire/ -- The "United Arab Emirates Prepaid Card and Digital Wallet Business and Investment Opportunities Databook - Market Size and Forecast, Consumer Attitude & Behaviour, Retail Spend - Q2 2023 Update" report has been added to ResearchAndMarkets.com's offering.
United Arab Emirates prepaid card market (value terms) increased at a CAGR of 9.2% during 2018-2022. Over the forecast period of 2023 to 2027, the market is expected to record a CAGR of 12.3%, increasing from US$5.66 billion in 2022 to reach US$10.30 billion by 2027.
This report offers a comprehensive data-driven analysis of prepaid payment instruments in the United Arab Emirates (UAE), encompassing expenditure through prepaid cards and digital wallets for both retail and corporate consumer segments. It also provides insights into consumer behavior and spending patterns in the UAE. With a wealth of over 100 key performance indicators (KPIs) at the country level, this report offers an in-depth understanding of the dynamics of the prepaid card and digital wallet market.
The digital payment ecosystem in the UAE has been experiencing steady growth in recent years. Favorable regulatory conditions and the presence of innovative fintech companies have contributed to the increasing adoption of prepaid payment instruments. With the concurrent growth of e-commerce, digital payment methods have become the preferred choice for many people in the UAE.
As businesses strive to keep up with the tech-savvy population's preference for prepaid payment instruments, the prepaid card industry is expected to see further acceleration in growth. Retailers are continuously diversifying their payment options to cater to consumer preferences. In summary, the report maintains a positive growth outlook for the prepaid card market in the UAE over the next three to four years.
Teen-focused prepaid card market has become a fertile ground for growth for fintech firms
Fintech firms are targeting teens in the Emirati market to capitalize on the growing shift towards digital payment services. These firms are launching mobile apps and prepaid cards to boost financial literacy among teenagers.
In November 2022, Leap, a fintech startup firm, announced that the firm had launched its services in the Emirati market. The firm is providing kids with a prepaid card that is linked to their Leap account.
In September 2022, Verity, another fintech firm targeting kids and teens, announced that the firm had launched its banking app in the Emirates. The firm, like Leap, also provides kids and teens with a mobile app and prepaid card to build their personal finance skills.
Amid the growing competition in the teen-focused prepaid card segment, firms are also raising funding rounds to scale and expand their presence in the region.
In October 2022, Cashee, a UAE-based digital banking platform for teenagers, announced that the firm had raised US$3 million in a funding round. The fintech firm, which provides banking solutions and prepaid cards to teenagers, is planning to use the capital for expanding its presence in Saudi Arabia.
With many fintech firms looking to offer banking solutions to teens and kids in the region, the publisher expects the competition to further intensify over the next three to four years. This will also present buyout opportunities for larger players from the short to medium-term perspective.
Prepaid payment instrument providers are raising funding rounds to further accelerate their growth
The digital payment ecosystem is projected to record strong growth over the next three to four years in the UAE. To capitalize on this growth potential, prepaid payment instrument providers are raising fresh capital to accelerate their growth.
In November 2022, Pyypl, a UAE-based fintech, and prepaid payment instrument provider announced that the firm had raised US$20 million in a Series B round, with a potential to further extended the round due to strong interest among investors. The firm is planning to use the fresh capital to further expand its mobile-based financial services platform.
Since its Series A round, the firm claims to have grown at a significant rate, with the number of users increasing four times. Furthermore, the transaction volumes and revenues have also surged fourfold during the period. As of November 2022, the firm had raised a total of US$40 million, since its inception.
From the short to medium-term perspective, the firm is also expected to expand its operations across the Middle East and Africa region as it has already received authorization for three markets, and is preparing to enter an additional 12 markets.
Firms are forging strategic alliances to launch crypto prepaid cards in the United Arab Emirates
Cryptocurrency adoption has been growing consistently in the Emirati market and holders are seeking a simple way to redeem their investments. Consequently, cryptocurrency platforms are forging partnerships with payment providers, a trend that is evident around the world.
In October 2022, BitOasis, the Dubai-based cryptocurrency platform, announced that the firm had collaborated with Mastercard to launch a crypto prepaid card for holders in the MENA region. The crypto card allows crypto holders to use their digital tokens at point-of-sale terminals and e-commerce marketplaces. These cards are expected to hit the market in early 2023 once the firm gets regulatory approval.
With a growing population of consumers investing in cryptocurrencies across the MENA region, the publisher expects significant demand for crypto cards, which will subsequently support the growth of the overall industry from the short to medium-term perspective.
Scope
United Arab Emirates Digital Wallet Market Size and Forecast
- Transaction Value Trend Analysis
- Transaction Volume Trend Analysis
- Average Value per Transaction
United Arab Emirates 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)
United Arab Emirates 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
Market Share Analysis by Prepaid Card Categories
United Arab Emirates Open Loop Prepaid Card Future Growth Dynamics
- Transaction Value Trend Analysis
- Transaction Volume Trend Analysis
- Average Value per Transaction
- Number of Cards
United Arab Emirates Closed Loop Prepaid Card Future Growth Dynamics
- Transaction Value Trend Analysis
- Transaction Volume Trend Analysis
- Average Value per Transaction
- Number of Cards
United Arab Emirates Prepaid Card Consumer Usage Trends
- By Age Group
- By Income Group
- By Gender
United Arab Emirates General Purpose Prepaid Card Market Size and Forecast
United Arab Emirates 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
United Arab Emirates Entertainment and Gaming Prepaid Card Market Size and Forecast
United Arab Emirates 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
United Arab Emirates 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
Payroll Prepaid Card Market Size and Forecast by Consumer Segments
Meal Prepaid Card Market Size and Forecast by Consumer Segments
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
United Arab Emirates Transit and Tolls Prepaid Card Market Size and Forecast
United Arab Emirates Healthcare and Wellness Prepaid Card Market Size and Forecast
United Arab Emirates Social Security and Other Government Benefit Programs Prepaid Card Market Size and Forecast
United Arab Emirates Fuel Prepaid Cards Market Size and Forecast
United Arab Emirates Utilities, and Other Prepaid Cards Market Size and Forecast
For more information about this report visit https://www.researchandmarkets.com/r/vifnug
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