Brazil is leading the digital payment revolution in the Latin American region. The Brazilian government is promoting the growth of the prepaid card market through Pix, the instant payment platform launched by the central bank. Along with the growing transaction volume in the online segment, prepaid payment instrument penetration has also increased in the brick-and-mortar sector in 2022.

Innovative fintech firms and strategic collaborations with global payments providers are driving the growth of the prepaid card market in Brazil, and the trend is projected to further continue from the short to medium-term perspective. Furthermore, the investment from venture capital and private equity firms into the Brazilian fintech ecosystem will support the industry growth over the next three to four years.

New regulation on prepaid card interchange fees is expected to dampen revenue growth for fintech firms in Brazil

In September 2022, the Brazilian central bank announced a 0.7% limit for interchange fees on a prepaid cards that are provided by fintech firms to their users in the country. The new regulation, which is expected to come into effect in April 2023, is a major setback for the growing prepaid card industry in Brazil. At present, there is no limit set on prepaid card interchange fees.

For fintech firms interchange fees on the prepaid card represents a major chunk of their revenue. Nubank, one of the leading prepaid card providers in the country, earned 7% of its total revenue through interchange fees during the financial year that ended June 30. According to the firm, the overall revenue for the firm would have been affected by 2.9%, if the central bank enforced the cap during the year. PagSeguro Digital and Inter & Co are among the other players that will be impacted due to the cap on interchange fees on prepaid card transactions.
Notably, conventional banking institutions pressed the central bank to set a cap on interchange fees, amid the rise of fintech firms in the country. The bank’s debit card interchange fees will be capped at 0.5% per transaction under the new regulations announced by the central bank.

While the move will encourage more retailers and merchants to accept prepaid card payments, thereby driving transaction volume and value, it is will have a significant impact on the revenue of fintech firms.

Payment providers are seeking to boost financial inclusion through prepaid card launches in Brazil

Brazil is leading the Latin American digital payment revolution. Amid the growing shift to digital payment solutions, payment providers are launching innovative prepaid payment instruments. For instance,

  • In November 2022, AstroPay, the online payment solution provider, announced that the firm had entered into a strategic alliance with Mastercard. Under the partnership, the two firms have launched a prepaid card solution in Brazil, thereby allowing consumers to pay wherever Mastercard is accepted.
  • In December 2022, Pay4Fun, the leading e-wallet service in Brazil, announced that the firm has also launched a prepaid card solution in partnership with Pomelo. The prepaid card aims to drive financial inclusion in the country, and consumers can use the payment method around the world.



With the demand for such prepaid payment instruments growing among consumers, PayNXT360 expects more such launches in the Brazilian market from the short to medium-term perspective.

Fintech firms are raising capital to further drive financial inclusion among young Brazilians

To teach young Brazilians about financial independence and drive financial inclusion, fintech firms target teens and Gen Z consumers. These firms are also raising capital to further accelerate their growth.

  • In August 2022, NG.CASH, a fintech firm based in Brazil, announced that the firm had raised US$10 million in a seed funding round, which was led by Andreesen Horowitz and Monashees. The firm, which provides a mobile wallet and prepaid card to young Brazilians aged 10 – 24, is planning to use the capital to further accelerate its growth while driving financial inclusion in the country. As of August 2022, the firm already has a strong user base of 900,000.



PayNXT360 expects the firm to further raise a funding round over the next three to four years. However, NG.CASH is also expected to experience a decline in its revenue due to the interchange fee cap introduced by the central bank in Brazil.

According to PayNXT360, the prepaid card market (value terms) in Brazil increased at a CAGR of 7.5% during 2018-2022. Over the forecast period of 2023 to 2027, the market is expected to record a CAGR of 12.9%, increasing from US$23.57 billion in 2022 to reach US$44.01 billion by 2027.

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 Brazil. With over 100 KPIs at country level, this report provides comprehensive understanding of prepaid card and digital wallet card market dynamics.

  • Market dynamics: Provides a comprehensive view on size and structure, industry dynamics, market trends, consumer attitude and behaviour, and competitive landscape in prepaid card and digital wallet industry in Brazil.
  • Digital wallet segments: Provides value, volume and average value per transaction across 5 key spend categories in digital wallet. This includes retail, travel, entertainment and gaming, restaurant, and recharge and bill payment.
  • Open loop and closed loop prepaid cards: market estimates and forecasts to assess opportunities 13 open loop and closed loop prepaid market segments. Details four essential KPIs – number of cards in circulation, number of transactions, load value, and value of transactions.
  • Consumer attitude and behaviour: Drawing from proprietary survey results, this report identifies and interprets key prepaid KPIs, including spend by age, gender, and income level.
  • Retail spend: Breaks down retail spend across 11 categories to provide detailed insights on consumer behaviour and changing dynamics of prepaid card spend.