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India is a predominantly cash driven economy. Almost 97% of the transactions are done through cash.  Payment cards such as debit and credit cards have risen during the past decade due to growing consumer awareness and Internet penetration. However, almost half the population of India is un-banked. Only 55% of the population have deposit account with banks. This leads to the basic need for prepaid payment channels.  Besides being an appropriate payment tool for the unbanked or the under banked, prepaid cards have become preferred choices for corporate India and consumers at large.

The detailed study by RNCOS Research titled “Indian Prepaid Card Market Outlook to 2017” identified that the Indian prepaid card market is mostly driven by corporate customers looking for easy and streamlined ways of processing funds. Bank branches are increasingly launching specific purpose cards to rope in more customers through risk free channels. Employers prefer paying through prepaid cards and employees are welcoming the move due to convenience of handling cards instead of cash/cheques. Boosted by strong corporate demand and rising consumption amidst general consumers, the Indian prepaid card market shall grow multifold at a hefty CAGR of around 40% during 2012-2017.

The in-depth study involved seeking industry insights from leading banking and non banking players in the prepaid card domain. Interviews across major cities including Delhi, Mumbai, Kolkata, etc. were taken to gain holistic market performance. Our primary research team conducted interviews with leading public and private bankers to gain their views about specific purpose cards while opinions of retail outlets operating and selling prepaid cards were obtained to understand consumer preference and future directions.

Analyzing all macro and micro industry determinants, the research report depicts historic, current and future prospects of the Indian prepaid card industry and its segments. Market insight into specific purpose cards and multipurpose cards reveals their individual growth prospects. Some of the key highlights of the research findings include emergence of prepaid remittance cards as convenient and cost effective mode of remittance transfers, rising trend of online utility bill payments by the common masses, and growing demand for travel cards during outbound trips.

The market projections have been arrived at through rigorous industry research and expert opinions across banking and non banking domains. Recent industry developments and descriptive profiling of key players are presented to update strategists on the latest industry happenings and player level strategies. Major industry drivers and trends describe the market pace and direction.  With the right blend of statistics and expert opinions, the research report is meant to assist management and investors in laying well-informed business strategies, thereby staying ahead of competition.