The report provides top-level market analysis, information and insights on the Sub-Saharan Africa prepaid card market, including:
The prepaid cards market has slowly gained popularity in South Africa, as organized retailers and vendors began to accept prepaid cards, with no processing fee. Furthermore, hoteliers and vehicle rental vendors have also started to accept prepaid cards for their service transactions. In addition, convenience will be the most important driver of the adoption of prepaid cards in South Africa.
Demand from younger consumers is expected to play a vital role in the growth of the prepaid cards market over the forecast period. While simple eligibility criteria established by Nigerian banks is expected to support the sales of prepaid cards in the country. As the majority of Nigerians do not have a bank account, Nigerian banks have established simple eligibility criteria so that more people can easily benefit from prepaid cards. Moreover, The Central Bank of Nigeria has implemented a new policy in Lagos to reduce the amount of physical cash such as notes and coins in rotation in the economy, while encouraging electronic-based transactions for the payment of goods and services.
In Kenya, the prepaid card market is in its early stages of development and provides modest growth potential for new market entrants. A number of banks, including Kenya Commercial Bank, Investment and Mortgages Bank and Bank of Africa have begun to offer prepaid cards. The prepaid cards markets in other Sub-Saharan countries such as Tanzania, Mozambique, Zambia and Botswana are in their early stages of development and only a few companies have entered the respective markets. The prepaid cards market in Tanzania is more developed than that of Mozambique, Zambia and Botswana, however, younger consumers are expected to support further growth over the forecast period.