In association with 'Visa', ItzCash, DCB Bank unveil new prepaid card
It is a multi-purpose prepaid card, designed to provide e-payments facility to millions of unbanked and under-banked Indians who continue to transact in cash.
Development Credit Bank Ltd (DCB) is amongst the fastest growing private sector banks in the country today with a history of operating in the financial services arena for more than 70 years.More recently the Bank has seen a rapid expansion in its retail operation and DCB currently has a network of 82 branches and extension counters.......
It is a multi-purpose prepaid card, designed to provide e-payments facility to millions of unbanked and under-banked Indians who continue to transact in cash.
Development Credit Bank Ltd (DCB) is amongst the fastest growing private sector banks in the country today with a history of operating in the financial services arena for more than 70 years.More recently the Bank has seen a rapid expansion in its retail operation and DCB currently has a network of 82 branches and extension counters.......
MUMBAI, INDIA: Prepaid card company Itz Cash Card Limited, and Development Credit Bank Limited have launched a multi-purpose prepaid card, in association with payments technology company Visa.
Called Freedom Prepaid Card, it is a multi-purpose card that can be issued to under-banked and unbanked individuals, said a press release. The card would be issued at an initial cost of Rs.50 and can be recharged any number of times after issue with amounts ranging from Rs.250 to Rs.50,000. In addition to the initial cost the cardholder would have to pay an annual fee of Rs.20.
The card can be purchased at any Itz Cash World Outlet, after completing a one-time registration. Cardholders can then use it to make purchases in store, pay bills and book tickets online, as well as withdraw cash at any ATM that accepts Visa.
Naveen Surya, MD, Itz Cash Card Ltd. said, “We are proud to present a unique 'first co-branded open loop prepaid card.' The launch of this product will provide an instrument to the common man who till today has been marginalized or completely excluded from experiencing the benefits of a ePayment instrument like debit/credit cards.”
“We are excited about this partnership and delivery platform as DCB Bank has a strong commitment to financial inclusion and we believe the DCB ItzCash Freedom Prepaid Card is a very innovative and powerful step towards empowering the urban unbanked segment,” said Murali M. Natrajan, Managing Director & CEO of DCB Bank.
For DCB Bank, the float money involved is the main attraction in the venture. RBI guidelines call for the money collected by issuers of pre-paid cards to be maintained in a separate account.
According to Uttam Nayak, Visa's group country manager, India and South Asia, the card would aim to achieve financial inclusion through collaboration, adding that the segment could be profitable for banks if they were to achieve scale. The partners are looking at issuing 1 million of the pre-paid cards across India, and at a later stage they would also consider a cash at point-of-sale facility with the merchant offering cash whenever required.
The initiative, by the US-based company is aimed at helping people without cards to make electronic payments for travel tickets, utility payments and shopping. The company, in association with DCB Bank has appointed Itz cash as a business correspondent to distribute cards across 40,000 shops in 2,500 centres.
Bank pre-paid cards till now have been largely limited to the travel segment, which have replaced travellers' cheques and are mainly used by travellers who are wary of using their debit or credit cards overseas. The Freedom Prepaid Card is pitched at people who have no access to electronic payments but could do with the convenience while buying travel tickets or making payments towards taxes. So, now you will be able to buy Visa payment cards from kirana outlets if you do not have a credit or debit card.
The bank is not overly concerned about growth moderating. It says that it will “manage the risk of growth falling significantly below trend.” It retained its GDP growth forecast for this fiscal at 8%.The target buyers include unorganised sector workers such as taxi and auto drivers. The shopkeeper would largely function as an agent of the bank and complete the "know your customer" formalities which would involve getting an identity and address proof.
Called Freedom Prepaid Card, it is a multi-purpose card that can be issued to under-banked and unbanked individuals, said a press release. The card would be issued at an initial cost of Rs.50 and can be recharged any number of times after issue with amounts ranging from Rs.250 to Rs.50,000. In addition to the initial cost the cardholder would have to pay an annual fee of Rs.20.
The card can be purchased at any Itz Cash World Outlet, after completing a one-time registration. Cardholders can then use it to make purchases in store, pay bills and book tickets online, as well as withdraw cash at any ATM that accepts Visa.
Naveen Surya, MD, Itz Cash Card Ltd. said, “We are proud to present a unique 'first co-branded open loop prepaid card.' The launch of this product will provide an instrument to the common man who till today has been marginalized or completely excluded from experiencing the benefits of a ePayment instrument like debit/credit cards.”
“We are excited about this partnership and delivery platform as DCB Bank has a strong commitment to financial inclusion and we believe the DCB ItzCash Freedom Prepaid Card is a very innovative and powerful step towards empowering the urban unbanked segment,” said Murali M. Natrajan, Managing Director & CEO of DCB Bank.
For DCB Bank, the float money involved is the main attraction in the venture. RBI guidelines call for the money collected by issuers of pre-paid cards to be maintained in a separate account.
According to Uttam Nayak, Visa's group country manager, India and South Asia, the card would aim to achieve financial inclusion through collaboration, adding that the segment could be profitable for banks if they were to achieve scale. The partners are looking at issuing 1 million of the pre-paid cards across India, and at a later stage they would also consider a cash at point-of-sale facility with the merchant offering cash whenever required.
The initiative, by the US-based company is aimed at helping people without cards to make electronic payments for travel tickets, utility payments and shopping. The company, in association with DCB Bank has appointed Itz cash as a business correspondent to distribute cards across 40,000 shops in 2,500 centres.
Bank pre-paid cards till now have been largely limited to the travel segment, which have replaced travellers' cheques and are mainly used by travellers who are wary of using their debit or credit cards overseas. The Freedom Prepaid Card is pitched at people who have no access to electronic payments but could do with the convenience while buying travel tickets or making payments towards taxes. So, now you will be able to buy Visa payment cards from kirana outlets if you do not have a credit or debit card.
The bank is not overly concerned about growth moderating. It says that it will “manage the risk of growth falling significantly below trend.” It retained its GDP growth forecast for this fiscal at 8%.The target buyers include unorganised sector workers such as taxi and auto drivers. The shopkeeper would largely function as an agent of the bank and complete the "know your customer" formalities which would involve getting an identity and address proof.
No comments:
Post a Comment