India Prepaid Cards Market: Investment & Growth Drivers, Forecast 2033

Market Overview:

According to IMARC Group's latest research publication, "India Prepaid Cards Market Size, Share, Trends and Forecast by Card Type, Purpose, Vertical, and Region, 2025-2033", the India prepaid cards market size reached USD 213.0 Billion in 2024. Looking forward, the market is expected to reach USD 2,277.0 Billion by 2033, exhibiting a growth rate (CAGR) of 30.1% during 2025-2033.

This detailed analysis primarily encompasses industry size, business trends, market share, key growth factors, and regional forecasts. The report offers a comprehensive overview and integrates research findings, market assessments, and data from different sources. It also includes pivotal market dynamics like drivers and challenges, while also highlighting growth opportunities, financial insights, technological improvements, emerging trends, and innovations. Besides this, the report provides regional market evaluation, along with a competitive landscape analysis.

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Our report includes:

● Market Dynamics
● Market Trends and Market Outlook
● Competitive Analysis
● Industry Segmentation
● Strategic Recommendations

Growth Factors in the India Prepaid Cards Market

● Government-Driven Digital Payment Revolution Creating Massive Adoption

India's prepaid cards market is experiencing explosive growth that's fundamentally reshaping how millions of people handle money, and much of this momentum comes directly from government initiatives pushing the country toward a cashless economy. The landmark shift happened with demonetization in November 2016, which instantly made digital payments essential rather than optional for hundreds of millions of Indians. That wasn't an isolated policy-it was the opening move in a comprehensive strategy to digitize financial transactions across the country. The government's Digital India campaign has systematically built the infrastructure and regulatory framework that makes prepaid cards not just viable but increasingly preferred over traditional banking products. What makes this particularly powerful is how it addresses India's unique challenge: reaching the unbanked and underbanked population. India still has significant numbers of people without traditional bank accounts, whether due to geographic isolation, documentation challenges, or simply because conventional banking hasn't reached them effectively. Prepaid cards solve this problem elegantly-they don't require opening deposit accounts or maintaining minimum balances, yet they provide secure, traceable payment capabilities that bring users into the formal financial system.

The RBI's regulatory evolution has been crucial here. In April 2024, the RBI permitted UPI payments from full-KYC Prepaid Payment Instruments (PPIs) through third-party applications like PhonePe, Google Pay, and Paytm-a game-changing decision that dramatically expanded prepaid card utility. Previously, wallet-based UPI transactions were restricted to the issuer's own application, limiting convenience and adoption. Now, PPI holders can make and receive UPI payments through any third-party UPI app, creating true interoperability that mirrors how bank accounts work. This isn't just technical enhancement-it eliminates a major friction point that kept consumers from fully embracing prepaid solutions. The RBI has also updated PPI guidelines throughout 2024, increasing UPI Lite transaction limits from Rs 500 to Rs 1,000 per transaction and wallet limits from Rs 2,000 to Rs 5,000, while introducing auto top-up features that automatically replenish balances. UPI transaction limits for specific categories jumped from Rs 1 lakh to Rs 5 lakh, particularly benefiting tax payments and large-value transfers. These aren't minor adjustments-they represent deliberate policy choices to make digital payments more practical for everyday use while maintaining security standards.

The government's usage of prepaid cards for welfare distribution demonstrates both commitment and scale. Social welfare programs, agricultural subsidies, pension disbursements, and healthcare assistance increasingly flow through prepaid cards rather than cash, ensuring transparency, reducing leakage, and bringing financial services to economically weaker sections. When government entities use prepaid cards to reach millions of beneficiaries, it creates massive infrastructure and normalizes digital payments in communities where they were previously unknown. The push extends beyond payments into broader financial inclusion. In February 2023, the RBI extended PPI issuance to foreign nationals visiting India, launching a pilot at select international airports for G-20 country tourists. These INR-denominated PPIs can be linked to UPI for merchant payments, loaded using cash or foreign cards, and used at any UPI QR-enabled merchant-a sophisticated solution that makes India's digital payment infrastructure accessible to visitors while generating data and experience that benefits the broader ecosystem.

The government has also facilitated infrastructure development through favorable policies. In February 2024, RBI revised rules to allow single transit prepaid cards across multiple public transport systems-a seemingly simple change that makes daily commuting dramatically more convenient across metros, buses, and parking facilities throughout India. When combined with the broader Unified Payments Interface that processed 250 billion transactions worth USD 3.4 trillion in 2024 alone-representing 50% of the world's digital transaction volume-it's clear India has built payments infrastructure that rivals or exceeds what exists in far wealthier countries. This foundation creates perfect conditions for prepaid cards to flourish, offering consumers payment flexibility without traditional banking requirements.

● Corporate Adoption Transforming Payroll and Expense Management

The corporate sector's embrace of prepaid cards represents another powerful growth driver that's fundamentally changing how businesses manage employee compensation, incentives, and operational expenses. Major fintech players are capitalizing on this shift. Zaggle reported 35.1% revenue growth in the October-December quarter of 2023, driven primarily by increased adoption of corporate prepaid cards. That's not anomalous-it reflects a genuine structural change in how Indian businesses handle financial administration. Companies across sectors are discovering that prepaid payroll and incentive cards solve multiple problems simultaneously. For employee salary disbursement, especially for blue-collar and MSME workers who may not have traditional bank accounts, prepaid cards provide immediate payment capability without requiring employees to open and maintain bank accounts or wait for account setup delays. This matters enormously in India's informal economy, where millions work without conventional employment structures but still need secure, reliable payment methods.

The expense management advantages are equally compelling. Corporate prepaid cards allow businesses to load specific amounts for travel, business expenses, vendor payments, or fleet costs, maintaining precise control over spending while eliminating the reimbursement paperwork that creates administrative burden. Finance teams can track expenditures in real-time, set category-specific limits, and generate automated reports-capabilities that simply don't exist with cash or even traditional corporate credit cards. Multiple banks and fintechs are facilitating these use cases through partnerships targeting MSME workers specifically. The combination of operational efficiency, financial control, and workforce convenience makes corporate prepaid cards increasingly standard practice rather than innovative experiment. Maharashtra and Gujarat have emerged as major hubs for corporate prepaid card adoption, with companies like Zaggle and Pluxee India establishing widespread user bases. The presence of major financial services infrastructure, combined with high concentrations of corporations and organized businesses, creates virtuous cycles where adoption breeds familiarity which drives further adoption.
International players are recognizing this opportunity too. UK-based fintech Tide entered the Indian market in 2022 specifically targeting SMEs with its RuPay-powered Tide Expense Card, aiming to onboard half a million SMEs within 24 months. That's a bold target that reflects confidence in market potential.

Revolut secured full RBI authorization in April 2025 to issue prepaid wallets and cards and enable UPI payments, positioning itself to offer both international and domestic payment solutions under a single brand. These aren't cautious market tests-they're substantial commitments by sophisticated players who've analyzed India's trajectory and see enormous opportunity. The gift card segment demonstrates similar momentum. India's gift card industry reached USD 7.6 billion in 2023 and is projected to hit USD 15.7 billion by 2028. Retailers, e-commerce platforms, and fintech companies offer gift cards for festive occasions, corporate incentives, loyalty programs, and general gifting-uses that have made gift cards preferred alternatives to traditional presents. The ONDC Network Gift Card launched by YES BANK represents innovation in this space, allowing consumers to purchase from a wide range of brands and categories with cards loadable up to Rs 10,000, targeting both individual and corporate customers.

The travel card category shows equally impressive growth, expanding approximately 25% year-on-year. Thomas Cook reported 30% annual growth for its Borderless Prepaid Card, reflecting how travelers increasingly prefer prepaid forex solutions over cash or credit cards for international trips. These cards offer better exchange rates, spending control, and security compared to carrying cash, while avoiding the foreign transaction fees and credit limits that constrain traditional credit cards. Corporate travel programs particularly favor prepaid travel cards because they simplify expense tracking and eliminate reimbursement complexity. The versatility of modern prepaid cards-handling domestic and international transactions, integrating with UPI and digital wallets, offering contactless and mobile payment capabilities-makes them practical tools across diverse corporate use cases. Companies aren't adopting prepaid cards because of marketing hype; they're adopting them because the operational benefits are real, measurable, and significant. That practical value proposition ensures sustained growth rather than speculative bubble.

● Fintech Innovation and Smartphone Penetration Enabling Mass Market Access

The third major growth driver involves the convergence of fintech innovation, smartphone proliferation, and digital wallet integration-forces that are making prepaid cards accessible, convenient, and feature-rich in ways that simply weren't possible five years ago. India's smartphone penetration has reached transformational levels. With over 750 million smartphone users and internet penetration extending deep into tier-2 and tier-3 cities, the infrastructure exists for mobile-first financial services to reach mass markets. Prepaid cards no longer require physical plastic-virtual prepaid cards live entirely on smartphones, can be issued instantly, and work seamlessly with QR codes, NFC payments, and UPI integrations. This digital-first approach dramatically reduces acquisition costs while expanding addressable markets.

The integration between prepaid cards and digital wallets has become particularly sophisticated. Financial institutions now offer cross-platform solutions where prepaid card balances sync with wallet apps, transactions flow through whichever payment method is most convenient, and users maintain unified financial views across multiple instruments. This interoperability was technically challenging and regulatorily unclear until recently, but RBI's progressive stance on PPI integration has enabled innovations that benefit consumers directly. PhonePe, MobiKwik, and Ola rank as the top three non-bank PPI players, while Paytm Payments Bank, Airtel Payments Bank, and HDFC Bank lead among bank-issued PPIs. These players continuously enhance features-from instant KYC completion using Aadhaar authentication to AI-powered fraud detection that analyzes transaction patterns in real-time.

The technological sophistication deployed in India's prepaid card ecosystem now rivals anything globally. Mastercard's generative AI system processes data from 125 billion annual transactions to identify fraudulent patterns, boosting fraud detection rates by an average of 20% and in some cases by 300%. This isn't hypothetical technology-it's actively protecting Indian prepaid card users every day. CARD91 launched a 3-in-1 card at Global Fintech Fest 2024 combining prepaid, ID, and access functionalities, easily integrating with mobile wallets to serve corporate employees and students. These innovations demonstrate how prepaid cards are evolving beyond simple payment instruments into comprehensive financial tools. The affordability and accessibility advantages are massive. Prepaid cards require minimal documentation-basic KYC for small PPIs, full KYC for higher-limit versions-but don't require proof of income, credit checks, or employment verification that block credit card access for millions of Indians. This makes prepaid cards the first formal financial product many young Indians, gig workers, students, and informal sector workers ever use.

The demographic opportunity is enormous. India's median age is 28, and young consumers show strong preference for digital payment methods over cash. They grew up with smartphones, find app-based financial management intuitive, and value the control and transparency prepaid cards provide. These aren't future customers-they're current users driving adoption today. The e-commerce boom reinforces prepaid card growth. Online shopping in India has exploded, and prepaid cards provide secure payment capability without exposing bank account details or requiring credit. E-commerce platforms actively promote prepaid payment options because they reduce failed transactions, chargebacks, and fraud compared to cash-on-delivery. The feedback loop is powerful: more e-commerce drives prepaid card adoption, which makes digital shopping more convenient, which drives more e-commerce. COVID-19 accelerated these trends dramatically. The pandemic made contactless payments not just convenient but necessary for health safety. Prepaid cards with NFC capabilities saw adoption surge as consumers and merchants alike prioritized hygiene and touch-free transactions. While pandemic urgency has subsided, the behavioral changes persist-consumers who discovered prepaid cards during COVID continue using them because the experience is genuinely better.

The competitive dynamics are also favorable for growth. Multiple issuers-banks, fintech startups, payment companies, retailers-are competing aggressively for prepaid card customers. This competition drives innovation, improves features, reduces fees, and expands distribution. International players entering India through partnerships or direct authorization bring global best practices while local players leverage deep market understanding. The result is a dynamic ecosystem where consumers benefit from continuous improvement while the market expands rapidly. The infrastructure supporting prepaid cards continues improving too. Merchant acceptance of digital payments has grown exponentially. Small shops, street vendors, and service providers throughout India now display UPI QR codes, and prepaid cards work seamlessly with this infrastructure. The convenience gap between cash and digital payments has essentially disappeared in urban areas and is shrinking rapidly in rural India. When digital payments become as easy as cash but offer additional benefits like transaction records, security, and rewards programs, the shift toward digital becomes inevitable rather than aspirational.

Key Trends in the India Prepaid Cards Market

● Open Loop Cards Dominating Market Share Through Universal Acceptance

When examining card type segmentation, open loop prepaid cards hold the majority market share-a position driven by their fundamental advantage of universal acceptance. Open loop cards, issued with networks like Visa, Mastercard, or RuPay, work at any merchant accepting those networks, whether online retailers, physical stores, restaurants, or service providers. This versatility makes them functionally equivalent to debit cards in everyday use, without requiring traditional bank accounts. The contrast with closed loop cards is significant. Closed loop cards work only within specific merchant networks-think Amazon gift cards usable exclusively on Amazon, or Starbucks cards limited to Starbucks outlets. While closed loop cards serve specific purposes well, particularly for brand loyalty programs and controlled spending environments, their restricted acceptance limits broader utility. Open loop cards face no such constraints. A RuPay prepaid card works at millions of merchant locations across India and increasingly internationally, providing payment freedom that mirrors what consumers expect from conventional banking products.

The shift toward open loop dominance reflects consumer preference for flexibility. Someone receiving salary on a payroll prepaid card doesn't want to worry about where they can spend it-they want universal acceptance so the card works for groceries, utilities, transportation, entertainment, and everything else. Corporate buyers favor open loop cards for similar reasons-issuing travel expense cards that work only at select vendors creates complications, while open loop cards that function anywhere simplify administration and employee experience. The regulatory environment has also favored open loop expansion. Historically, only banks could issue open loop PPIs, but evolving RBI guidelines have progressively expanded eligibility, enabling non-bank fintechs to offer open loop prepaid solutions under appropriate licensing frameworks. This regulatory evolution has intensified competition and innovation in the open loop segment while maintaining consumer protection standards. The payment network infrastructure makes open loop cards increasingly attractive. With RuPay growing as India's domestic card network, open loop prepaid cards can leverage the entire UPI ecosystem, acceptance infrastructure, and interoperability advantages that RuPay offers-advantages that closed loop systems can't match.

That said, closed loop cards maintain significance in specific use cases. Retailers use closed loop gift cards to encourage repeat purchases and build brand loyalty. Transit authorities issue closed loop cards for public transportation because the controlled environment simplifies fare collection and reduces fraud. Corporate cafeterias and internal systems use closed loop cards for contained spending within organizational boundaries. These applications represent meaningful volume, but they don't drive the same mass market expansion that open loop cards deliver. The technical capabilities of modern open loop cards further cement their advantage. They support contactless payments, mobile wallet integration, online transactions, international use, and all the features consumers expect from contemporary payment instruments. Closed loop cards, constrained by their limited networks, often can't match this feature richness. The market data reflects these dynamics clearly. Prepaid Payment Instruments recorded 134.701 million units in July 2024, up from 119.803 million units in June 2024-month-over-month growth that demonstrates sustained expansion. While this figure includes both open and closed loop cards plus digital wallets, the open loop segment drives the majority of growth as consumers and businesses increasingly prefer unrestricted payment capability.

● Payroll and Incentive Cards Leading Purpose Segmentation

Looking at purpose-based segmentation reveals payroll and incentive cards dominating the market-a position that reflects how Indian businesses are fundamentally changing compensation and benefits administration. Payroll cards solve a massive practical problem. India has enormous populations of blue-collar workers, gig economy participants, and MSME employees who often lack traditional bank accounts or find conventional banking inconvenient. Paying these workers via cash creates security risks, administrative burden, and transparency challenges. Bank transfers require employees to have accounts and provide bank details, creating friction and delays. Payroll prepaid cards eliminate these problems. Employers load salaries onto cards, employees receive them immediately, and funds can be spent anywhere without bank account requirements. This is transformational for both employers and workers.
The scale of opportunity is massive. India's informal sector employs hundreds of millions, and organized corporates employ millions more in roles where prepaid payroll cards offer clear advantages over legacy payment methods. Multiple partnerships specifically target this segment. Banks collaborate with fintechs to issue payroll cards for MSME workers, recognizing that capturing payroll relationships provides entry points for broader financial services.

Workers receiving salaries on prepaid cards become potential customers for savings products, credit offerings, insurance, and investment services-creating lifetime value that justifies aggressive competition for payroll relationships. Incentive cards represent the related but distinct category where companies reward employees, channel partners, or customers through prepaid cards loaded with bonus amounts, recognition rewards, or promotional values. These cards offer precision targeting-companies can instantly issue incentive cards to specific individuals with exact amounts, track redemption, and measure program effectiveness. Compared to cash bonuses or gift vouchers, prepaid incentive cards provide better control, transparency, and recipient convenience.
The corporate adoption trends are clear. Zaggle's 35.1% revenue growth driven by corporate prepaid cards isn't isolated-it reflects industry-wide shifts toward digital compensation tools. Companies implementing prepaid payroll and incentive programs report administrative cost savings, improved employee satisfaction, reduced cash handling risks, and better financial visibility. These benefits drive continued expansion beyond early adopters into mainstream corporate practice. Travel cards constitute another significant purpose segment.

India's growing middle class travels internationally with increasing frequency, and prepaid travel cards offer superior alternatives to cash or credit cards. Thomas Cook's 30% annual growth for its Borderless Prepaid Card demonstrates consumer appetite. These cards lock in exchange rates, avoid foreign transaction fees, provide spending control, and eliminate the security concerns of carrying large cash amounts abroad. Corporate travel programs favor prepaid travel cards because they simplify expense management-companies load specific amounts for business trips, employees use cards for travel expenses, and finance teams receive detailed transaction records without reimbursement paperwork.

General Purpose Reloadable (GPR) cards serve users seeking flexible payment instruments without specific employer or travel relationships. These cards appeal to young consumers, gig workers, and individuals who want payment capability without traditional banking. They can be loaded from any source, spent anywhere open loop networks are accepted, and reloaded repeatedly, offering functionality similar to debit cards but with prepaid simplicity. Remittance cards address the specific use case of domestic and international money transfers. Workers in urban areas sending money to families in rural India, or NRIs remitting to India, can use prepaid remittance cards to load funds that recipients access without bank accounts. This purpose-specific design offers advantages over general payment methods for remittance scenarios. The purpose segmentation reveals how prepaid cards aren't single-function products-they're versatile platforms supporting diverse financial needs across consumer, corporate, and institutional use cases. This versatility drives adoption across multiple segments simultaneously, creating robust growth rather than dependence on any single application.

● West and Central India Leading Regional Adoption with Strong Financial Infrastructure

Regional analysis reveals West and Central India dominating the prepaid cards market-a position driven by multiple reinforcing factors. This region includes Maharashtra and Gujarat, states that have established themselves as financial services hubs with particularly strong adoption of corporate and payroll cards. Mumbai, as India's financial capital, generates enormous institutional demand through its concentration of corporations, banks, financial services firms, and organized businesses. These entities are sophisticated users of prepaid card solutions for payroll, expense management, travel, and incentive programs. The presence of major players like Zaggle and Pluxee India (formerly Sodexo) with widespread user bases in this region creates network effects-as more companies adopt prepaid cards, the supporting infrastructure expands, making adoption easier for additional companies.

Maharashtra's retail sector adds another dimension. Reliance Retail, headquartered in Mumbai, issues prepaid gift cards for loyal customers, leveraging its massive retail footprint across formats. When India's largest retailer actively promotes prepaid cards, it normalizes them for millions of consumers who might otherwise remain cash-dependent. Gujarat's prosperous consumer base and strong entrepreneurial culture drive both corporate and consumer adoption. The state's businesses readily adopt financial innovations that improve efficiency, while consumers with higher disposable incomes embrace digital payment methods. The region's robust financial infrastructure-extensive banking networks, strong fintech presence, advanced payment acceptance infrastructure-creates favorable conditions for prepaid card adoption. Merchants widely accept digital payments, consumers trust digital financial products, and regulatory compliance is well-established. These foundational elements make West and Central India natural leaders in prepaid card penetration.

South India, particularly Karnataka and Tamil Nadu, shows strong growth driven by distinct dynamics. Bengaluru's status as India's technology hub means high concentrations of IT professionals, startups, and modern enterprises that readily adopt digital payment solutions. The city's demographics skew young and tech-savvy-precisely the population most comfortable with prepaid cards and digital wallets. Karnataka's IT industry has created affluent consumer segments with international exposure and preferences for sophisticated financial products, including prepaid cards for both domestic and international use. Tamil Nadu's strong entrepreneurial culture and prosperous urban centers like Chennai drive prepaid card adoption across retail, corporate, and institutional segments. North India represents substantial opportunity given the region's massive population and economic activity concentrated in Delhi NCR and surrounding states. Delhi's position as national capital creates significant institutional demand from government entities, corporate headquarters, and service sector companies. The region's large MSME sector provides enormous opportunity for payroll card penetration, while growing middle-class consumption drives retail prepaid adoption.

East India shows growth potential, particularly as digital payment infrastructure extends beyond metro cities into smaller urban centers and rural areas. While this region currently lags West and South India in prepaid card penetration, the gap is narrowing as smartphone adoption increases and payment acceptance infrastructure expands. The regional patterns underscore how prepaid card adoption follows broader economic development and financial infrastructure maturity, but also how adoption in leading regions creates blueprints that accelerate growth in emerging markets. Companies succeeding in Maharashtra can replicate strategies in Bihar; fintech solutions working in Bengaluru can expand to tier-2 cities throughout India. This geographic expansion dynamic ensures sustained growth as prepaid cards penetrate progressively deeper into India's vast and diverse market. The 134.701 million Prepaid Payment Instruments recorded in July 2024 represent just the beginning-India has 1.4 billion people, and prepaid cards have barely scratched the surface of potential adoption.

Leading Companies Operating in the India Prepaid Cards Market:

● American Express Company
● Axis Bank Limited
● EbixCash
● HDFC Bank Ltd.
● ICICI Bank Ltd
● Kotak Mahindra Bank Limited
● Pluxee India
● Punjab National Bank
● State Bank of India
● Yes Bank Ltd

India Prepaid Cards Market Report Segmentation:

Breakup by Card Type:
●Closed Loop Cards
● Open Loop Cards

Breakup by Purpose:
● Payroll/Incentive Cards
● Travel Cards
● General Purpose Reloadable (GPR) Cards
● Remittance Cards
● Others

Breakup by Vertical:
● Corporate/Organization
● Retail
● Government
● Others

Regional Insights:
● West and Central India
● South India
● North India
● East India

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

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This release was published on openPR.