Prepaid Payment Instruments: Implementation and Challenges
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Prepaid Payment Instruments: Implementation and Challenges. Navin Surya, Managing Director, ItzCash Card Ltd. Agenda. Is Prepaid the best instrument for financial inclusion/micropayment?. Can prepaid lead India from Cash to Cashless Society?.

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Prepaid Payment Instruments: Implementation and Challenges

Navin Surya, Managing Director, ItzCash Card Ltd.


Agenda

Is Prepaid the best instrument for financial inclusion/micropayment?

Can prepaid lead India from Cash to Cashless Society?

With the RBI Guidelines in Place, what would be the best model for the country?

Roadmap for making prepaid payments a 20Billion USD industry in next 5years?


Agenda

Is Prepaid the best instrument for financial inclusion/micropayment?

Can prepaid lead India from Cash to Cashless Society?

With the RBI Guidelines in Place, what would be the best model for the country?

Roadmap for making prepaid payments a 20Billion USD industry in next 5years?


India needs payments options beyond debit/credit cards to move from cash to cashless economy

India is one of the largest Cash economy with approximately USD529BN

annual cash spent

Middle and bottom of the pyramid users are already exposed to prepaid and have adopted well to use the same


Prepaid is the best instrument for financial inclusion and micro payments

  • Majority of middle and bottom of the pyramid use cash for most of their transactions in their daily lives

  • Top of the pyramid segment also prefer using cash for selected micropayments

Prepaid Can drive financial inclusion and eMicropayments across the target segment

*Payment User Segments and %

Source: payment industry reports on cards


Agenda micro payments

Is Prepaid the best instrument for financial inclusion/micropayment?

Can prepaid lead India from Cash to Cashless Society?

With the RBI Guidelines in Place, what would be the best model for the country?

Roadmap for making prepaid payments a 20Billion USD industry in next 5years?


Prepaid Instruments as per the RBI guidelines and Market Maturity for the same

  • Calling Cards

  • Mobile refill coupon

  • Gift Vouchers

  • Fleet/Fuel Cards

  • Meal Coupons

  • Gift Vouchers

  • Travelers' Cheque

  • Virtual calling Cards

  • eTop ups for Mobile

  • DTH Subscription

  • Toll Cards

  • Transit Cards

  • Online Gaming Cards

  • Online Services

  • Mobile Services

  • Gift Cards

  • Food Cards

  • Travel Cards

  • Payroll Cards

  • No-frills A/c Card

  • Virtual A/c

  • Retail Payment

  • Multipurpose Toll

  • Multipurpose Transit

  • Hybrid Cards

  • Government Payments

  • Virtual Toll & Transit

  • Gift Cards

  • Health Cards

  • Insurance

  • G P R Cards

  • Govt. Reimbursements

  • Hybrid Cards

  • Cobranded/White-label

These products and business model would be different basis target segment of B2B2C market and/0r B2C market


Agenda Maturity for the same

Is Prepaid the best instrument for financial inclusion/micropayment?

Can prepaid lead India from Cash to Cashless Society?

With the RBI Guidelines in Place, what would be the best model for the country?

Roadmap for making prepaid payments a 20Billion USD industry in next 5years?


Key Challenges Maturity for the same

  • Prepaid Industry Recognition

    • To establish Prepaid as important category of products in all stakeholders’ (consumers, merchants etc.) mind

  • Business Model

    • Various products are still evolving and business model in some of these products is yet to be very clear

    • Organization planning to expand Semi-close prepaid category other than Gift/Meal Card products needs to have long term commitments and deep pockets to fund the evolution of business model

  • Regulatory Environment

    • Very good start but miles to go for evolving industry

    • Level playing field in terms of escrow requirements and eligibility to issue various type of cards would be key for success of non-bank players

    • Framework for collaboration between banks, telcos and other entities would be key

  • Competition: expansion of market vs. copy cat models

    • Innovation vs. stereotyped following would be key issue

    • Inter-operability would be key in near future

India would be one of the largest Prepaid Payment Instrument Market across the globe in next 3-5 years!


Online  Bill Payment category as Maturity for the same

the best site for 'Technology usage'

Thank You

Product of the year ’09 -

Multipurpose cash card

Pay Before Award -

Best general purpose

spending card program


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