15 November, 2013 – Industry Trade Body Compares and Contrasts Prepaid Market Trends in Key Markets
Prepaid International Forum webinar poll shows remittances predicted to be a key driver of prepaid market growth in the Middle East
International not-for-profit trade association, Prepaid International Forum (PIF) today announced highlights from the first in a series of two incisive webinars on prepaid market trends around the world.
The series is designed to provide insights on emerging trends and opportunities for prepaid solutions with Peter Sidenius, a Director with global financial services and payments consulting firm, Edgar, Dunn & Company, leading the sessions entitled: “Prepaid Market Trends: A Global Overview.
The first live broadcast compared factors affecting the adoption and growth of prepaid payment solutions in the Middle East, Europe and South America, with references to dominant programmes and prepaid market opportunity estimates.
As well as highlighting market similarities the webinar revealed that for some markets the prepaid space is very unique. Payroll represents the largest segment for prepaid in the Middle East and is a key area of growth in Latin America where 65%1 of the population lack access to financial services. This was compared to Germany, where payroll must be paid via a bank account making prepaid propositions for this segment superfluous.
The webinar also highlighted Government-sponsored programmes as strong drivers of prepaid growth across all markets. Prepaid, as a simple form of bank account, is seen as means of improving levels of financial inclusion as governments seek to drive adoption of cashless payments across all segments of society, while at the same time being an effective means of disbursing government payments. In Brazil, the government uses prepaid to pay welfare benefits through the Bolsa Familia social services programme to 12 million households. The segment is poised for significant growth in multiple markets and is predicted to be an important pillar in prepaid market development in the Middle East.
A poll of participants during the broadcast revealed that remittances presented a major opportunity for prepaid card providers in the Middle East. Outbound and inbound remittances in the Middle East is estimated to be worth $340 billion and growing at 6% CAGR2
Commenting on the poll results, Peter Sidenius said, “A high proportion of money is being transferred through unregulated channels so there is a real opportunity for providers to develop robust and sustainable prepaid programmes. Harnessing this segment could drive prepaid growth in the region further”
The launch of the PIF webinar series in 2013 forms an integral part of the association’s mandate to create an environment where prepaid products are understood and can thrive. By monitoring and sharing global market trends PIF aims to help members and the industry create compelling market propositions. PIF has established operations in Europe and India and further international expansion is planned with the official launch of PIF Middle East in Dubai on November 14, 2013.
Amit Sethi, Co-Chairman of PIF India and Managing Director for Asia, Middle East and Africa at TSYS, added ‘Sharing market insights, best practices, successful business models, and regulatory developments along with promoting the understanding of successful examples of prepaid usage to improve people’s lives, create new business opportunities, enable financial inclusion and simplify the customer experience is at the heart of the not-for-profit Prepaid International Forum. These insightful webinars and the momentum the PIF has gathered as it continues to extend its work and footprint around the globe is impressive. TSYS is proud to be associated with and a patron of such a forum.’
1 MasterCard, 2012 Global Prepaid Sizing Study 2Gulf News
Prepaid International Forum (PIF) is a global not-for-profit trade association established to represent the interests of all parties involved in the issuance of prepaid products and services. It acts as principal point of liaison between the industry and regulators, government agencies, consumer bodies and the media. PIF is dedicated to the progression of the industry and acts as a catalyst for the development of sensible industry guidelines and codes of best practice.
About TSYS (Regional Patron)
At TSYS, (NYSE: TSS), we believe payments should revolve around people — not the other way around. We call this belief “People-Centered Payments℠.” By putting people at the center of every decision we make, TSYS supports financial institutions, businesses and governments in more than 80 countries. Through NetSpend, a TSYS Company, we empower consumers with the convenience, security, and freedom to be self-banked. TSYS offers issuer services and merchant payment acceptance for credit, debit, prepaid, healthcare and business solutions.
TSYS’ headquarters are located in Columbus, Georgia, with local offices spread across the Americas, EMEA and Asia-Pacific. TSYS provides services to more than half of the top 20 international banks, and has been named one of the 2013 World’s Most Ethical Companies by Ethisphere magazine. TSYS routinely posts all important information on its website, for more please visit us at www.tsys.com.
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If you would like more information about PIF, please contact Diane Brocklebank at +44 (0) 7736 971986 or email at firstname.lastname@example.org.