I’m off to Cape Town next week to meet some of the key players behind the growth of Prepaid in the region.
In South Africa we haven’t got to the point yet where local celebrities are clamouring to get their names branded on prepaid cards, but it is a market that is showing so much growth potential that the widest represented prepaid industry organisation in the world, Global Prepaid Exchange, established an office in Cape Town late last year.
It also represents a big enough market opportunity for the big banks in South Africa to sit up and take notice, expanding their prepaid offering to get a slice of the cake. According to Global Prepaid Exchange, the market is worth R29.4bn annually – almost half the current market capitalisation of Nedbank, South Africa’s fourth largest bank. The term “market opportunity” is used to describe the estimated maximum potential annual load value that could be achieved in the market on prepaid products given current market conditions.