The market is fueled by the country’s rising interest in digital payments & ‘Digital India’ initiative.
- Digital Wallets Revolutionize Payments: Mobikwik partners with NPCI and Axis Bank, introducing MobiKwik RuPay Prepaid Card for global transactions.
- Seamless Transit Payments: Paytm’s prepaid transit card simplifies travel expenses, extends to shopping, parking, and more.
- Empowering MSME Workers: ICICI collaborates with Niyo to launch ICICI Bank Niyo Bharat Payroll Card, boosting financial inclusion.
- Fintech’s Impact: Indian fintech firms drive prepaid card growth, catering to diverse needs and accelerating the shift towards cashless transactions.
- As per Ken Research, India’s prepaid card market is experiencing exponential growth, driven by the country’s increasing shift towards digital payments
India’s prepaid card market has witnessed a robust growth in the recent years registering a remarkable growth rate. As the country’s digital landscape continues to evolve, fintech companies are actively capturing opportunities to expand their services and offer innovative solutions in order to meet the increasing demand coming in for digital payments. In this article, we uncover some of the recent developments in the Indian prepaid card market, underlining the efforts of financial service providers and digital wallet companies to capture more market share.
1. Digital Wallets Introducing Prepaid Card Solutions
Read More: India’s Cashless payment Market
As a response to the rising demand for digital payments across online and offline merchants, digital wallet providers are introducing innovative prepaid card solutions. One such instance is of the collaboration between Mobikwik, the Indian digital wallet company, the National Payments Corporation of India (NPCI), and Axis Bank. Together, they launched the MobiKwik RuPay Prepaid Card (November 2021).
The said card, combined with the wallet, grants customers unlimited access to over 40 million merchants worldwide, including the popular MobiKwik’s extensive merchant network. The card mirrors up to 2 lakhs (~US$2,690) from the wallet balance, allowing users the convenience of digital payments on a worldwide scale.
Moreover, users of the prepaid card are automatically qualified for MobiKwik Zip, a ‘Buy Now Pay Later (BNPL)’ product, further enhancing the appeal of this financial offering.
2. Unified Prepaid Transit Cards for Easy Payments
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With the rising popularity of cashless transactions in India, fintech companies are entering into various sectors with innovative products. Paytm, a prominent financial service and digital wallet provider, launched its stand-alone transit card which is specifically aimed at fulfilling commuters’ needs.
The Paytm Transit Card, a prepaid card, facilitates seamless travel experiences on metros, buses, and trains. However, its utility doesn’t stop there. Users can even make use of the card for parking expenses, food, fuel, online shopping, and other travel-related expenses thereby streamlining the entire payment process.
The card is linked to Paytm Payments Bank and the wallet, allowing easy top-ups and transactions, making it an attractive proposition for travelers seeking convenience and efficiency.
3. Fintech Collaborations for MSME Workers:
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Recognizing the importance of the micro, small, and medium enterprises (MSME) sector, several financial institutions have now collaborated with fintech companies in order to launch prepaid payroll cards for blue-collar employees.
In one such instance, ICICI, a private sector bank in India, joined hands with fintech company ‘Niyo’ to introduce the ICICI Bank Niyo Bharat Payroll Card. Aimed at MSME workers, this prepaid card allows employers to load their salaries onto the cards, empowering workers with hassle-free access to their funds.
These payroll cards, powered by Visa, provide workers with the flexibility to use funds as per their requirement thereby supporting financial inclusion and promoting digital payment adoption.
As per Ken Research, India’s prepaid card market is experiencing exponential growth, driven by the country’s increasing shift towards digital payments. Fintech companies, recognizing the potential, are introducing innovative prepaid card solutions and forming strategic partnerships to cater to various consumer segments. As India embraces a cashless future, prepaid cards are poised to play a pivotal role in transforming the nation’s payment landscape.
Major Players Mentioned in the Report:
India Gift Card Market Players
India Co-Branded Cards Market
- Apollo Pharmacy
- Big bazaar
- Make My Trip
India Prepaid Reloadable Card Market
- Axis Bank
- ICICI Bank
- Kotak Mahindra
India NCMC Card Market
- Canara Bank
- Union bank of India
- Bank of Baroda
- ICICI Bank
Key Target Audience – Organizations and Entities Who Can Benefit by Subscribing This Report:
- Risk-Averse Individuals
- Fixed Income Seekers
- Small Business Owners
- Non-Profit Organizations
- Fixed-Time Investors
Time Period Captured in the Report:
- Period: 2022-2023
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