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Prepaid cards slowly growing popular in middle eastern countries

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Prepaid cards segment has experienced steady growth in recent years in the Middle East region. Government initiatives across countries, growth in mobile commerce and consumer spending is propelling this segment forward. In GCC region, prepaid cards experienced a growth of 31% over the trailing four quarters ending Q3 2016 in comparison to previous four quarters. Among others, UAE and Saudi Arabia are the frontiers of this development.

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Prepaid cards slowly growing popular in middle eastern countries

  1. 1. Prepaid cards slowly growing popular in Middle Eastern countries Analyst View Point Series
  2. 2. Table of Contents Market Context Key Insights Market Opportunity
  3. 3. Market Context Prepaid cards segment has experienced steady growth in recent years in the Middle East region. Government initiatives across countries, growth in mobile commerce and consumer spending is propelling this segment forward. In GCC region, prepaid cards experienced a growth of 31% over the trailing four quarters ending Q3 2016 in comparison to previous four quarters. Among others, UAE and Saudi Arabia are the frontiers of this development.
  4. 4. Key Insights In case of Saudi Arabia, the development is a bit slower and it experienced a bump when CASHU prepaid cards were reportedly banned in the country. It was stated that due to money laundering issues and lack of clarity on user count and usage pattern, Saudi Arabian Monetary Agency (SAMA) had instructed Ministry of Commerce and Investment to ban its usage. However, CASHU clarified usual business operation in Saudi Arabia later on. It also announced collaboration SAMA towards improvement in security standards and e-payment protocols. Overall, Saudi Arabia is going to be a key market in the Middle East. According to PayNXT360, the prepaid card category in the country is expected to record CAGR of 25.5% to cross over a billion US dollars in value terms.
  5. 5. Market Opportunity In UAE, prepaid cards make up a significant share of electronic payments. According to PayNXT360, the prepaid card market in Gross Dollar Value terms increased at a CAGR of 22.7% during 2011-2015 in UAE. Over the forecast period of 2016 to 2020, the category is expected to reach US$ 8.6 billion by 2020. With banks, other financial institutions, and remittance players keen on increasing expansion in the prepaid segment, medium to long term outlook remains positive.
  6. 6. To Know More To know more and gain deeper understanding of prepaid card industry, click here.

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