Asia Pacific Prepaid Card and Digital Wallet Business Report 2024: Chinese Digital Wallets are Entering into Strategic Collaborations, Unified Payments Interface (UPI) Continues to Lead - ResearchAndMarkets.com

The "Asia Pacific Prepaid Card and Digital Wallet Business and Investment Opportunities Databook - Market Size and Forecast, Consumer Attitude & Behaviour, Retail Spend - Q1 2024 Update" report has been added to ResearchAndMarkets.com's offering.

Prepaid card market (value terms) in the region increased at a CAGR of 8.9% during 2019-2023. Over the forecast period of 2024 to 2028, the market is expected to record a CAGR of 10.5%, increasing from US$598.83 billion in 2023 to reach US$ 1.00 trillion by 2028.

This report provides a detailed data centric analysis of prepaid payment instruments, covering spend through prepaid cards and digital wallets across retail and corporate consumer segments. In addition, it provides a snapshot of consumer behaviour and retail spend dynamics in Asia Pacific. With over 100 KPIs at country level, this report provides comprehensive understanding of prepaid card and digital wallet card market dynamics.

India is expected to lead the growth of the Asia Pacific prepaid card market over the medium term. The higher adoption of the Unified Payments Interface (UPI), coupled with improved digital payments infrastructure in Tier III cities and beyond, is expected to drive prepaid card market growth in India in 2024. The region will also receive growth support for higher adoption of digital wallets in Southeast Asian countries.

Firms are forging strategic alliances to tap into the growing market across Southeast Asia. This trend is projected to gain further momentum over the medium term, driving the competitive landscape in the market. Prepaid payment instrument providers are targeting the unbanked and the underbanked consumer demographic to drive the next growth phase in these markets. Overall, the publisher maintains a positive growth outlook for the Asia Pacific prepaid card market over the next three to four years.

Chinese digital wallets are entering into strategic collaborations to facilitate seamless payments for tourists

To further tap into the growing digital payments and tourism market, Chinese firms are forging strategic alliances with businesses across the Asia Pacific region. This trend is driving the competitive landscape in the market.

Alipay+, a cross-border payment solution offered by Ant Group, is expanding in South Korea. The firm, in 2023, partnered with Korea Easy Payment Foundation, the company behind the ZeroPay electronic wallet in South Korea. This collaboration is part of Ant Group's efforts to spread its services across Asia. The partnership will enable tourists using digital wallets under the Alipay+ network to make payments at shops and restaurants in South Korea by scanning the ZeroPay QR codes at the checkout.

ZeroPay, notably, is a payment service developed by the Seoul City government to support small businesses. It allows these businesses to accept payments using QR codes without having to pay any settlement fees. Going forward, Alipay+ is expected to enter into more such collaborations, as it continues to expand and strengthen its presence in the Asia Pacific market.

Unified Payments Interface (UPI) continues to lead prepaid card industry growth in the Indian market

UPI transactions, in January 2024, set a new high reaching INR 18.41 trillion, showing a slight increase of 1% from the previous month's INR 18.23 trillion. The number of transactions also saw a 1.5% rise, reaching 12.20 billion compared to October's 12.02 billion.

To provide some context, on the consistent growth achieved by UPI, the transaction value was INR 17.4 trillion, with 11.4 billion transactions in November 2023. Data from the National Payments Corporation of India (NPCI) reveals that January's figures represent a 52% increase in volume and a 42% increase in value compared to the same month in the previous financial year.

The government has been pushing for the growing adoption of UPI. The Reserve Bank of India, in September 2022, introduced UPI Lite enabling consumers to make low-value digital payments without utilizing a remitter bank's core banking systems in real-time. In the Interim Budget 2024-25, the government allocated INR 14.41 billion for the promotion of RuPay debit cards and low-value UPI transactions. The scheme has been launched to offer financial rewards to banks that encourage the use of RuPay debit cards for Point-of-Sale (PoS) and e-commerce transactions. Additionally, it aimed to promote low-value BHIM-UPI transactions (P2M) amounting to Rs 2,000 or less. Although the allocation is significantly less compared to last fiscal year, the scheme is expected to further deepen the digital payment ecosystem in India over the medium term.

Businesses are entering into strategic collaborations to drive financial inclusion in the Southeast Asian region

A significant chunk of the population has no access to digital payment services in Southeast Asia. Consequently, to tap into this consumer demographic, firms are entering into strategic partnerships across the region.

GCash, the Philippine-based super app, entered into a strategic collaboration with Visa in October 2023. The partnership is part of the strategy to reach the unbanked population and provide them with payment cards, thereby targeting financial inclusion in the Philippines. With the prepaid cards powered by Visa, consumers will be able to use the payment solution in more than 200 countries and territories.

Boost, the Malaysian fintech firm, entered into a strategic partnership with CelcomDigi and Mastercard in October 2023. The collaboration is part of the strategy to launch a global prepaid card to target underbanked and unbanked customers in Malaysia. The global prepaid card will also provide users with Mastercard Travel Rewards.

This title is a bundled offering, combining one regional and 10 country reports:

• Asia Pacific Prepaid Card and Digital Wallet Business and Investment Opportunities Databook
• Australia Prepaid Card and Digital Wallet Business and Investment Opportunities Databook
• China Prepaid Card and Digital Wallet Business and Investment Opportunities Databook
• India Prepaid Card and Digital Wallet Business and Investment Opportunities Databook
• Indonesia Prepaid Card and Digital Wallet Business and Investment Opportunities Databook
• Japan Prepaid Card and Digital Wallet Business and Investment Opportunities Databook
• Malaysia Prepaid Card and Digital Wallet Business and Investment Opportunities Databook
• Philippines Prepaid Card and Digital Wallet Business and Investment Opportunities Databook
• Singapore Prepaid Card and Digital Wallet Business and Investment Opportunities Databook
• South Korea Prepaid Card and Digital Wallet Business and Investment Opportunities Databook
• Thailand Prepaid Card and Digital Wallet Business and Investment Opportunities Databook

Scope

• Prepaid Payment Instrument Market Size and Forecast
• Digital Wallet Market Size and Forecast
• Digital Wallet Market Size and Forecast by Key Segments
• Digital Wallet Spend by Key Retail Categories
• Prepaid Card Industry Market Attractiveness
• Market Share Analysis by Functional Attributes - Open Loop vs. Closed Loop
• Open Loop Prepaid Card Future Growth Dynamics
• Closed Loop Prepaid Card Future Growth Dynamics
• Prepaid Card Market Share by Key Players
• Prepaid Card Consumer Usage Trends
• Prepaid Card Spend by Key Retail Categories
• General Purpose Prepaid Card Market Size and Forecast
• Gift Card Market Size and Forecast by Functional Attribute
• Gift Card Market Size and Forecast by Consumer Segments
• Gift Card Market Share Analysis by Retail Categories
• Gift Card Market Share Analysis by Gifting Occasion
• Gift Card Market Share Analysis by Purchase Location
• Entertainment and Gaming Prepaid Card Market Size and Forecast
• Teen and Campus Prepaid Card Market Size and Forecast
• Teen and Campus Prepaid Card Market Size and Forecast by Functional Attribute
• Business and Administrative Expense Prepaid Card Market Size and Forecast by Consumer Segments
• 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
• Healthcare and Wellness Prepaid Card Market Size and Forecast
• Social Security and Other Government Benefit Programs Prepaid Card Market Size and Forecast
• Fuel Prepaid Cards Market Size and Forecast
• Utilities, and Other Prepaid Cards Market Size and Forecast
• Virtual Prepaid Card Industry Market Attractiveness
• Virtual Prepaid Card Market Size and Future Growth Dynamics by Key Categories

For more information about this report visit https://www.researchandmarkets.com/r/kslekj

About ResearchAndMarkets.com

ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240530163692/en/