The latest report by IMARC Group, titled “China Prepaid Cards Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027,” finds that the China prepaid cards market reached a value of US$ 333 Billion in 2021. A prepaid card, also known as prepaid debit or stored-value card, contains a prepaid amount of money that can be used to pay for goods or services. It creates an alternative payment ecosystem with different incentives for consumers, merchants and payment system providers. Prepaid cards provide convenience to the public by easing everyday financial transactions like shopping, paying bills and withdrawing money from an ATM. It also offers other advantages, such as security, versatility, direct deposit, online shopping, theft protection, and no requirement of credit history or interest rates. On account of these advantages, there has been a rise in the adoption of prepaid cards in China.
We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.
China Prepaid Cards Market Trends:
With the rising internet penetration and growing awareness about electronic payment methods, prepaid cards are gaining widespread preference among users in China. Apart from this, the expanding e-commerce industry has led to a surge in the number of online purchases made using electronic modes, such as prepaid cards. In recent years, the Government of China has also revived its efforts to regulate the issuance and circulation of commercial prepaid cards since they are safer than carrying cash. Moreover, several companies are offering prepaid cards to consumers, which is projected to increase the user base in the country. For instance, UnionPay International, a subsidiary of China UnionPay, is offering secure, cost-effective and high-quality cross-border payment services and ensures convenient local services to cardholders and merchants. Besides this, with the incorporation of the latest technologies, contactless prepaid transit is emerging as a popular option as it enables quicker transactions than swiping a card. On account of these factors, the market is projected to reach a value of US$ 527 Billion by 2027, expanding at a CAGR of
7.9% during 2022-2027.
- Based on the card type, the market has been bifurcated into closed- and open-loop cards. Closed-loop cards are currently the most popular type of prepaid cards in China.
- On the basis of the purpose, payroll/incentive cards represent the largest segment. Other major segments include gift, travel, general purpose reloadable (GPR) and other cards.
- The market has been categorized based on the vertical into retail, corporate/organization, government and others. At present, the retail segment holds the leading position in the market.
- Region-wise, Guangdong exhibits a clear dominance in the market. Other major regions are Jiangsu, Shandong, Zhejiang.
- The competitive landscape of the market has been examined in the report, providing detailed profiles of the key players operating in the industry.
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