Prepaid in LAC: Where are the opportunities?

Cash remains deeply embedded across Latin America and the Caribbean, but prepaid is creating new ways for people and organisations to access and manage digital payments. We spoke to Carlos Seer, Associate VP & Business Development Director in LAC, about the market, its strongest use cases and what comes next.

How would you describe the prepaid market in LAC today?

LAC has long maintained a strong reliance on cash, with the phrase “Cash is King” deeply ingrained across the region. Although digital payments and financial inclusion initiatives are advancing, millions of adults remain outside the formal financial system.

This continued reliance on cash presents a significant challenge to financial inclusion, making prepaid products an increasingly relevant instrument for addressing the gap.

What are the most interesting opportunities for banks in prepaid across the region?

I see three particularly interesting areas:

Financial inclusion: Prepaid cards can help bridge the gap to formal financial services for unbanked and underbanked individuals. They provide access to electronic payments without requiring a conventional bank account or credit product.

Corporate payments: Prepaid cards have become a standard instrument for benefit programmes such as meal vouchers and fuel cards. They can also support payments to informal workers, corporate expenses such as travel per diems, and employee spot rewards.

Government disbursements: Prepaid can provide an efficient way to distribute government assistance, including unemployment benefits, disaster relief, pension payments and targeted food subsidies.

How is the prepaid proposition evolving beyond the traditional card?

The proposition is increasingly about more than a physical card.

Fintech and neobank platforms such as Mercado Pago, Nubank and Ualá demonstrate the wider move towards digital, account-led propositions. Depending on the specific product and market, customers can access pre-funded money through physical cards, virtual credentials and digital wallets.

These propositions give more consumers access to areas such as e-commerce and digital subscription payments.

Are there particular customer segments or industries where you see especially strong potential?

• The unbanked and underbanked remain important segments, but there are several others with strong potential
• International travellers can use multi-currency prepaid cards to lock in foreign-exchange rates and avoid high foreign-transaction fees
• Retailers and e-commerce businesses can issue closed-loop gift cards to generate upfront cash flow, encourage future purchases and strengthen loyalty
• Parents and teenagers can benefit from parental-controlled prepaid cards, giving teenagers an allowance and greater independence while allowing parents to monitor spending
• Mass transit and urban mobility present another interesting application. Some transit systems combine travel passes with open-loop payment functionality, allowing one card to be used for both transport and everyday purchases
• Remittances are also significant. Money sent by migrant workers provides families with essential funds for food, healthcare and education, while supporting the economies of many countries across the region

What do you think the future of prepaid looks like in LAC?

Although banking and digital-payment initiatives are advancing, financial exclusion remains substantial. According to the World Bank, approximately 70% of adults in LAC have an account, leaving millions without access. Meaningful transformation will therefore take time.

Remittances are another area to watch. LAC received a record $173.7 billion in remittances in 2025, according to the Inter-American Development Bank.