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May 1, 2008updated 04 Apr 2017 4:18pm

Latin America prepaid boom ahead

Latin Americas prepaid general purpose card market holds the potential for substantial growth, believes prepaid card specialist NovoPayment Latin Americas prepaid general purpose card market holds the potential for substantial growth, believes prepaid card specialist NovoPayment. The companys optimism is based on research conducted by the organisation and presented at the third annual Underbanked Financial Services Forum held in June in Miami under the auspices of the Center for Financial Services Innovation, a nonprofit affiliate of US community bank ShoreBank Corporation.

By EPI editorial

Latin America’s prepaid general purpose card market holds the potential for substantial growth, believes prepaid card specialist NovoPayment.
The company’s optimism is based on research conducted by the organisation and presented at the third annual Underbanked Financial Services Forum held in June in Miami under the auspices of the Center for Financial Services Innovation, a nonprofit affiliate of US community bank ShoreBank Corporation.
Presenting the study NovoPayment’s founder and CEO Anabel Perez said: “Our study revealed a significant market with the income, access to infrastructure and consumption behaviour to be viable prepaid general purpose card users.

Latin America: prepaid general purpose cards“Approximately 57 percent of the population has the need, the capacity, the means, and we believe the necessary economic and social incentives to warrant modern payment tools,” she continued. “Prepaid general purpose cards have proved to be well suited for providing these services in a sustainable way.”

According to NovoPayment’s study, Latin and Central America represent a potential market of more than 300 million unbanked people with a purchasing power of more than $200 billion per year using prepaid spending cards by 2015.
Such a development would provide access to POS, ATM, online transactions and mobile payments to a public that currently relies almost exclusively on cash, stressed NovoPayments.
The forecast covers 15 countries – Argentina, Brazil, Chile, Colombia, Costa Rica, the Dominican Republic, Guatemala, Ecuador, El Salvador, Honduras, Mexico, Nicaragua, Panama, Peru and Venezuela and was based on the measurement of such factors as labour force size, poverty rates, wages, banking and mobile phone penetration and other metrics based on NovoPayments’ experience.
Headquartered in Miami, NovoPayments can lay claim to a number of firsts in Latin America including the first prepaid general purpose card not requiring a bank account and the first mobile to mobile funds transfer platform using short message service.
With operations in the US and nine Central and Latin American countries NovoPayments has more than 730,000 cards in issue which are used for 22 million transactions totalling $330 million annually. Products include gift cards and payroll cards. Solutions are also supplied to banks, government agencies and utilities.
NovoPayment cards are issued under the MasterCard, Maestro, Visa and Visa Electron brands. Card management is undertaken via NovoPayment’s Sistema de Gestión de Tarjetas Electrónicas Prepago integrated payments processing and administration platform.

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