Tuesday, April 29, 2008

Latin America and Europe Becoming Prepaid Card Markets

According to a recent report released by Mercator’s International Advisory Service, detailed here at AllPay News, Latin America and Europe are beginning to embrace the use of prepaid cards. Many of the uses of the prepaid cards in these two regions are gifting, transit ticketing, money transfers and general prepaid cards. Some unique uses of prepaid cards have been by government agencies and employers to supplying social benefits as well as payroll payments, either as per diem payments, and card-based vouchers.

Elisa Athonvarangkul, Analyst, International Advisory Service, cites some considerations as companies enter and expand in these markets, “Growth in Latin American and European prepaid markets can be attributed in part to increased consumer awareness of the benefits of this form of payment, in both the public and private sectors. Although prepaid cards may currently be less popular in some emerging markets than they are in developed markets, it is expected that stored-value products will continue to be used in a greater number of applications, and introduce new users to the concept of payment cards."

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