In a recent survey, it was noticed that the percentage of contactless payments has increased to 13.5% from December 2018 to December 2021. Initially, it was deemed as the result of the covid-19 pandemic but now people are addicted to this convenient method of payment. Whether it's shopping for groceries or dining out, paying bills, or banking, the new age man prefers online services.
The industry of cards has evolved from magnetic strips to chips and recently to contactless cards. In the field of cards prepaid cards are assisting individuals, MSMEs, and large-scale businesses in fund management, amount transferring, tax savings, and budget saving. During the technological advancement of India, even plastic cards have evolved into virtual cards.
Growth rates and Advancements
According to the latest Experian study, India is one of the fastest growing digital markets in the world, with 91% of Indians preferring online payment and transaction methods. The cards contribute to 26% of digital transactions, but 53% of the value of all digital commerce is generated by cards.
Every industry has turned towards digitalization due to this escalating economic assistance for their economic growth. These digital advancements not only help in financial growth but also carter the ease of handling budgets and their distribution.
What are prepaid cards?
Prepaid cards work differently when it comes to customer convenience. They provide benefits, security, hold on to analytical data, mass distribution, etc. to the cardholder or card provider. For ease of user prepaid cards in India can be found in various varieties according to the need, such as gift cards, student cards, meal cards, expense cards, corporate cards, fuel cards, and many more.
Every card has its specialty and facilities to offer, which eventually attracts most of India’s population. Anyone can acquire a prepaid card through a payment account, regardless of their status which allows everyone to enjoy the digital payment method. It's no wonder a country like India, filled with enthusiasts, ranks among the top 20 global users of digital payments.
Role of fintech companies
Fintech companies work as a bridge between business and IT. The fintech companies in India experienced a push after the global financial crisis in 2008 since then proved to be a handful for corporate, businesses, and SMEs in saving their taxes and helping as financial assistants.
The global average rate of fintech is said to be 64% while the percentage of the Indian fintech market alone is calculated to be 87% making the country’s estimation to be increased 5 times from the current size in the coming 3 years, which made fintech companies lead digital India.
With the increase in the technology of API (Application Programming Interface), India is set to experience new innovations in digital payments methods including contactless payments. Fintech has raised the possibility of economic growth in India while giving the corporate and MSMEs a chance to grow themselves.
Initially, embedded banking was giving cutthroat in the field of financial services through their innovation of new platforms that are specific to some niches like employee bank accounts and paperless approach. Fintech companies grew with the upper hand because of their preference for customers such as better designs and more personalized services.
The digital cards that fintech companies offer create a great impact on digital growth with their effortless services, better design, and anywhere acceptable features. The prepaid cards stand out in the business because of their availability and services for higher to lower income groups, parents to students, and individual holdings to multiple holdings. Also, with the increase in technology these cards can be acquired from anywhere either while sitting on an office chair or traveling on a bus.
Effect of new regulations from RBI
Recently RBI has given two regulations for the fintech companies to follow, on June 2022 RBI barred fintech companies from using credit lines PPI, wallets, and prepaid cards. At first, the circular confused everyone but according to recent economic news, PCI and many leading fintech companies are figuring out new alternatives to help their credit customers. In addition, prepaid cards will continue to escalate through their other benefits and pre loadable features.
From July 2022 tokenization came into effect as RBI needs all kinds of digital wallets and PPIs. The circular was made to secure the personal data of an individual from online thefts and frauds. Tokenization seems like a positive approach to taking digital India forward in a secure way. This step will definitely increase the trust of new consumers hence automatically expanding the fintech companies’ market including prepaid cards.
Future with BankIT prepaid cards
BankIT is contributing to the growth of digital India since 2019, providing financial management, contactless payments, and quick transactions across 400+ banks, investments, and other financial services to customers.
BankIT helps its customers to process with an easy KYC method through its application and web portals. Corporations are attracted to multiple issuance services with effortless management and data tracking.
In addition, BankIT has created a mark on its customers by providing a special Build Your Own Card Program, the facility to customize a card according to the needs and fixing a merchandise limit.
With a wide variety of cards, BankIT has taken care of the security of cards and customers through its 24/7 available customer care service.
BankIT prepaid cards offer its customers to grow with the growing digital India market through its impeccable services that focus on customers’ interest.