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A17383 | Pages: 260 | Charts: 57 | Tables: 141 |
The global forex cards market size was valued at $260.34 billion in 2021, and is projected to reach $1,196.52 billion by 2031, growing at a CAGR of 16.6% from 2022 to 2031.
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A Forex card is a prepaid card that the user can use for paying hotel bills, shopping and other transactions when they are travel overseas. These are preloaded and take care of the users foreign currency requirements. Users can use the card to withdraw cash in foreign currency, make payments while shopping, and for checking their balance. This forex card not only lets the user make hassle-free transactions overseas, but it also keeps them safe from any fluctuation in exchange rates. Moreover, users will be instantly notified regarding all their transactions via emails or text messages.
Forex cards protect users from fluctuations in foreign currency prices. In addition, surge in tourism has led to the rise of adoption of forex card among users. Moreover, it protects users from paying additional charges while making transactions in a foreign country. These are the major driving factors for the growth of the market. However, forex card charge ATM withdrawal charges while withdrawing money from any foreign country ATM. In addition, chances of getting the physical card stolen are some of the major factors limiting the growth of the forex card market. On the contrary, rise in demand for cash alternatives among users while travelling to other countries is expected to provide lucrative growth opportunities in the coming years.
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The forex cards market is segmented on the basis of type, industry vertical, end user, and region. By type, it is segmented into multi-currency forex card, and single currency forex card. By industry vertical, it is classified into hospitality, consumer goods, education, and others. Based on end user, it is segregated into businesses and individuals. By region, it is analyzed across Asia-Pacific, Europe, North America, and LAMEA.
The report focuses on growth prospects, restraints, and trends of the forex cards industry. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the forex card market.
COVID-19 impact analysis
The COVID-19 pandemic had a negative impact on the forex market as the tourism industry came to a halt during the pandemic. Moreover, as people stopped going for vacations to other countries, the demand for forex prepaid card reduced which negatively impacted the market growth. Moreover, the foreign trade experienced a decline which resulted in a decline in the number of travelers going to other countries for business. Therefore, the demand for forex card decreased drastically. Hence, the COVID-19 pandemic had a negative impact on the forex card market during the COVID-19 pandemic.
Top impacting factors
Growth in Tourism
The tourism industry experienced growth over the last few years and it has helped the foreign exchange services and forex card market to grow significantly. Moreover, tourism industry was one of the sectors that was affected the most by COVID 19. However, it was beneficial for the tourism sector as global travel restrictions were lifted off during the post pandemic period. This resulted in the growth of foreign exchange services and forex card demand from travelers that started going on vacations to different countries after the lockdown. In addition, it was easy for travelers to apply for forex card instead of going to banks for currency exchange and money withdrawal. Moreover, looking toward the benefits from forex card, travelers chose forex travel card service over any other foreign currency service for making their travel experience much smoother. Therefore, growth in tourism is one of the major driving factors for the forex cards market growth.
Rise in demand for cash alternatives
The forex card is the most convenient and inexpensive way to carry money abroad. A forex card allows the holder to store and transfer money electronically when travelling abroad. In addition, this helps a holder to make cashless payments instead of looking for ATM’s or banks abroad while travelling, which makes their travel experience much smoother. Furthermore, millennials are rapidly adopting cashless and contactless payments, that’s why forex card is the best option for them. Also, holders get monthly statements giving an idea of how much balance is left on the card. In addition, the rapid adoption of cashless payment methods to reduce the usage of cash is anticipated to provide major lucrative opportunities for the growth of the forex cards industry in the upcoming years.
Key benefits for stakeholders
Key Market Segments
Key Market Players