Businesses adopts prepaid cards for expenses
The Indian prepaid card and digital wallet market is anticipated to grow annually by 30.3%, reaching an estimated value of US$81.65 billion by 2025, according to a report being offered by ResearchAndMarkets.
From 2020 to 2024, the sector saw a 34.3% CAGR, with this robust growth set to continue at 26.7% CAGR through 2025 to 2029, said the “India Prepaid Card and Digital Wallet Market Intelligence and Future Growth Dynamics Databook – Q2 2025 Update” https://www.bseindia.com/.
By 2029, projections suggest the market will expand to US$210.16 billion from its 2024 assessment of US$62.65 billion.
India’s prepaid card and digital wallet space is set for continued growth, characterized by increased competition and technological advancements, the report said on 11 June https://www.nseindia.com/.
The market’s rapid growth is powered by advancements in digital payment tech, the proliferation of smartphones, and widespread UPI adoption, the report said.
“Businesses are adopting prepaid cards for streamlined expense management, resulting in enhanced financial controls. Furthermore, the entry of international fintech firms is intensifying market competition, fostering innovative consumer and business solutions,” the report stated https://digitalinasia.com/.
The integration of prepaid cards with digital wallets and mobile applications is boosting user convenience and financial adaptability, it added.
Significant growth is expected due to improved digital payment infrastructures, smartphone penetration, and UPI integration, simplifying transactions https://www.digitalasiahub.org/.
Over the next few years, increased usage of prepaid cards by consumers and businesses is anticipated, intertwined with technological progress enhancing user convenience. The prepaid card’s role in payments will expand alongside consumer confidence and regulatory backing, offering businesses innovative financial management tools.
The report continued, “India’s prepaid card market is expanding due to increasing digital adoption, policy support, and competition from established and emerging players, fostering an environment for growth and innovation.”
Recently seen alliances and strategic collaborations are influencing the market, enhancing service delivery to meet increasing consumer demands, it pointed out. “Regulatory initiatives focusing on secure payment systems will determine the market dynamics while encouraging innovation and product differentiation, thus increasing consumer choice and improving financial solutions.”
Supported by government initiatives and enhanced digital product offerings, the market is thriving. Dominant entities like Axis Bank, HDFC Bank, ICICI Bank, and SBI continue forming the sector’s backbone, despite new ventures like Revolut moving into the arena. Strategic partnerships, innovations, and the presence of both local and global players will form this landscape, creating more tailored financial services. Fiinews.com
