FinTechs are expanding businesses through partnerships-innovative solutions
India’s prepaid card market is expected to record a CAGR of 31.1%, reaching US$105.43 billion by 2026 from US$35.69 billion in 2022, according to a report by ResearchAndMarkets.
It has increased at a CAGR of 19.9% during 2017-2021, said the report, “India Prepaid Card and Digital Wallet Business and Investment Opportunities Databook”, released on 18 Feb 2022.
In 2021, the Indian FinTech industry recorded strong growth. With the changing digital landscape of the country, various FinTech companies are either engaging in business expansion through partnerships or developing innovative solutions targeting various sets of consumers. With a future-looking mindset, these companies are likely to attract significant investment in the next four to six quarters.
With higher demand for digital payments across online and brick-and-mortar stores in the country, digital wallet providers are launching innovative prepaid card solutions in order to capture more market share.
Financial service and digital wallet providers are introducing unified prepaid transit cards in the Indian market.
With the rising usage of cashless payments in the country, FinTechs are approaching various sectors to capture customers with their innovative products.
For instance, in November 2021, Indian financial service and digital wallet provider Paytm introduced its stand-alone transit card for riding the metro, bus and train in the country.
Banks are tying up with FinTechs to launch payroll cards for MSME workers in India.
Targeting the workers of micro, small, and medium enterprises (MSMEs), various partnerships are being witnessed in the country to provide prepaid payroll cards for these blue-collared employees, said the report.
The market is led by Flipkart Online Services Pvt Ltd, Tata Group, Future Group, Reliance Group, Amazon.com Inc, Aditya Birla Group and K Raheja Corp. fiinews.com
