In recent years, prepaid cards have emerged as a valuable alternative for customers in the Middle East region. According to experts, the prepaid card market in the Middle East is expected to record a CAGR of 16.6%, growing from US$ 62.2 billion in 2019 to US$ 115 billion by 2023. The rise in technology-driven products and services and a push from governments are major contributing factors to the rapid growth of prepaid solutions in the Middle East region. Governments are persuading their citizens to go cashless and use digital payments, thereby propagating the growth of prepaid cards in the region. The pandemic has also accelerated this financial inclusion and e-payments have gained exceptional momentum. A recent survey commissioned by the government in Dubai revealed that 71% of consumers in the UAE increased their use of digital payments for in-store shopping since the start of the pandemic and 49% shop online, with 61% of them using cards and digital wallets. Prepaid cards have also gained traction among people who do not have a good credit score or an existing bank account.
These changes have opened new avenues for banks to grow their customer base and make these cards available to a larger segment of unbanked customers including—youngsters, minors, students, expatriate workers and blue-collar service providers. Prepaid cards are gaining popularity among this population because they are simple, convenient to use and offer a range of services like—gifting, sending money home/remittance, payroll processing, government benefit disbursement, consumer transit, travel expenditure, healthcare reimbursements, student groups, insurance disbursement, and employee incentive processing.
For banks, prepaid card markets have opened new gates of revenue generation and as these cards have a ‘pay early’ option, it essentially eliminates the non-payment and credit risks for banks. This gives banks the desired flexibility and advantage to capitalize on the booming prepaid card market.
Meet the perfect e-companion for your prepaid customers
The Clayfin app offers your customers more convenience and control through superior features. Our pre-login functions like self-onboarding and eKYC will enable ease of use right from the first time they access the app. Our seamless user interface makes reloading/requesting money, FX rate enquiry, gaining information on the latest offers/promotions and buying prepaid cards virtually simple. The app offers utilities and tools like card control manager and FX rate converter, and easy enquiries about transactions, account balance, bill payment, fund transfer/remittance, and managing beneficiaries anytime anywhere. With our enhanced admin functions, your customers can access user spend reports, better user management and SafetyNet features. Additionally, our app allows your customers to apply for new cards, locate the nearest branch/ATM and keep a tab of the reward points earned.
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We offer omnichannel access which gives your customer the freedom to use our application across devices. When using our app, your customers will experience safe and secure banking which includes MFA/2FA, transactions with OTP/Password/TPIN/Biometric for transaction monitoring. Moreover, our app provides multi-currency and multilingual support that caters to your diverse customer base and eases international transfers and reporting. Most importantly, when you choose Clayfin, you offer your customers unparalleled UX which can boost your profits and increase revenue generation.
Prepaid Solution is an Important Platform for the Growth of Middle Eastern Banks
When it comes to prepaid solutions, there is still a lot left to explore and discover. In the next decade, the financial sector in the Middle East will see exponential growth in this segment and customer demand for prepaid services will increase manifold.