Home » Business » Tele2: prepaid card market in Latvia is stagnant :: Dienas Bizness

Tele2: prepaid card market in Latvia is stagnant :: Dienas Bizness

The mobile operator Tele2 informs that according to the NielsenIQ retail measurement index, the total market of mobile prepaid cards in Latvia has decreased by 7.5% over the past year, assessing the total number of prepaid cards sold.

The most significant impact on this segment is the pandemic caused by Covid-19, which has had a strong impact on the tourism industry and the habits of the population. It was tourists who were the ones who actively used prepaid cards when visiting Latvia.

According to NielsenIQ, the Zelta Zivtina brand has by far the largest market share of prepayments – 63.4%. In addition, the Zelta Zivtina brand, owned by the mobile company Tele2, is the only one that has been able to increase its market share in the prepaid card starter kit segment by 4.7% in the last 12 months.

“For several years now, the prepaid card market has been stagnating. In the long run, the main reason is the change in the habits of the population, as well as the growing role of mobile communications in people’s daily lives. Namely, currently people mainly choose to use mobile communications in postpaid, which allows them to make calls and use the mobile Internet according to the chosen plan, without worrying about the expiration of the card term or limit, ”says Raivo Rosts, Commercial Director of Tele2.

“At the same time, we are seeing how important prepaid cards are for many people to be available to their loved ones, so these cards will definitely be in demand among students and seniors as well as tourists in the future.”

According to the company, most often customers choose to buy prepaid cards at petrol stations and small format or convenient and fast shopping stores.

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