In an unsurprising turn the Middle East region has become the second highest prepaid region in terms of growth. This is according to speaker Francesco Burelli at the Prepaid Summit to be held in the Middle East on April. The Middle East is the second fastest growing region at 28 per cent compound annual growth rate based on 2010 and 2012 data.
“From 2013 to 2017 the circulation of prepaid cards is forecast to steadily increase at 11 per cent compound annual growth rate globally, however MENA markets will outperform, exhibiting a stronger growth of 18 per cent compound annual growth rate. The Middle East is the second fastest growing region at 28% CAGR based on 2010 and 2012 data.
“The open loop prepaid cards will grow at a faster rate in the Middle East. The remittance, youth and unbanked segments are very significant opportunities to be exploited by providers”.
According to Burelli, many types of prepaid cards are available in the market, but the two main categories are “open-loop” and “closed-loop.”
“An open loop card is associated with and bears the logo of an electronic payment network such as MasterCard and Visa. Open loop cards can be used everywhere the network merchant is honored. Closed-loop cards are single merchandise cards that can be used only at merchant locations, typically are not reloadable, and normally can be redeemed only for goods or services.”
This is an exciting trend for prepaid around the world. We’ve recently reported that prepaid is starting to grow in Africa and this trend in the Middle East can only help to concept grow further.