According to PayNXT360’s Q2 2021 Global Prepaid Card Survey, prepaid card market in the Brazil is expected to grow by 16.2% on annual basis to reach US$ 26,772.4 million in 2021.The prepaid card market expected to grow over the forecast period, recording a CAGR of 14.4% during 2021-2025. The prepaid card market in Brazil will increase from US$ 23,039.5 million in 2020 to reach US$ 39,417.7 million by 2025.

The Brazilian prepaid card market recorded significant growth in 2020. The global pandemic primarily fueled this substantial growth in the prepaid card segment. With more people staying at home and resorting to e-commerce during the Covid-19 pandemic, the use of prepaid cards on online transactions surged significantly. PayNXT360 expects the trend to continue in Brazil over the next three to four quarters, resulting in stable adoption of prepaid cards among consumers.

Teen-focused prepaid card providers raised funds to expand their business in Brazil:

Most of the teenagers in the country use cash to complete their transactions. This is primarily due to they do not have access to financial services, be it traditional or digital. Z1, a Sao Paulo-based digital banking startup, provided teens in Brazil with a digital banking app and prepaid card to solve this problem.

WhatsApp re-launched its prepaid payment option in Brazil:

Nearly after a year of its suspension amid growing concerns over potential threats to the national financial services system, WhatsApp has re-launched its prepaid payment instrument in Brazil in May 2021.

After months of testing and evaluations regarding privacy and market competition, WhatsApp received authorization from the Central Bank in March 2021. As of May 2021, the prepaid payment instrument is available for individual users in Brazil. The instant messaging app is planning to offer the service to companies in the next few months. Notably, WhatsApp is planning to make the prepaid payment instrument available to all of its 120 million users in the country by Q2 2021.

Growing mergers and acquisitions activities in the prepaid card segment:

With rising market attractiveness in the Brazilian prepaid card market, global prepaid card providers are looking to expand their presence in Brazil. This has resulted in growing mergers and acquisition activities over the last few quarters. For instance,
• In November 2020, InComm Payments, the leading gift card provider, announced the acquisition of one of the significant closed-loop gift card processors, Todo Cart?es, in Brazil. The acquisition is expected to help InComm Payments expand its presence by enabling the processing and distribution of closed-loop gift cards.