+ All Categories
Home > Documents > Prepaid Payment Instruments: Implementation and Challenges

Prepaid Payment Instruments: Implementation and Challenges

Date post: 22-Feb-2016
Category:
Upload: hubert
View: 75 times
Download: 0 times
Share this document with a friend
Description:
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?. - PowerPoint PPT Presentation
Popular Tags:
10
1 Prepaid Payment Instruments: Implementation and Challenges Navin Surya, Managing Director, ItzCash Card Ltd.
Transcript
Page 1: Prepaid Payment Instruments: Implementation and Challenges

1

Prepaid Payment Instruments: Implementation and Challenges

Navin Surya, Managing Director, ItzCash Card Ltd.

Page 2: Prepaid Payment Instruments: Implementation and Challenges

• 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?

2

Agenda

Page 3: Prepaid Payment Instruments: Implementation and Challenges

• 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?

3

Agenda

Page 4: Prepaid Payment Instruments: Implementation and Challenges

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

Demographics of Republic of India

Population of India, 1961-2003Population: 1,147,995,904 (2008 est)Growth rate: 1.578% (2008 est)

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

Page 5: Prepaid Payment Instruments: Implementation and Challenges

Prepaid Can drive financial inclusion and eMicropayments across the target segment

*Payment User Segments and %Source: payment industry reports on cards

PaymentsCategories

/Users

Utility Travel Mobile Government Services

Entertainment

Public Transport

& Toll

Shopping

Holder & User of Credit Card

(< 1%)

Holder & Non-user of Credit Card (< 1%)

Banked & Non-holder of Credit Card

(35%)

Unbanked & Underserved

(44%)

unbanked(20%)

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

Page 6: Prepaid Payment Instruments: Implementation and Challenges

• 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?

6

Agenda

Page 7: Prepaid Payment Instruments: Implementation and Challenges

7

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

•Calling Cards•Mobile refill coupon•Gift Vouchers•Fleet/Fuel Cards

•Virtual calling Cards•eTop ups for Mobile•DTH Subscription•Toll Cards•Transit Cards•Online Gaming Cards

•Government Payments•Virtual Toll & Transit•Gift Cards•Health Cards•Insurance

•Meal Coupons•Gift Vouchers

•Online Services•Mobile Services•Gift Cards•Food Cards

•Virtual A/c•Retail Payment•Multipurpose Toll•Multipurpose Transit•Hybrid Cards

•Travelers' Cheque

•Travel Cards•Payroll Cards•No-frills A/c Card

•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

Page 8: Prepaid Payment Instruments: Implementation and Challenges

• 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?

8

Agenda

Page 9: Prepaid Payment Instruments: Implementation and Challenges

• 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

9

Key Challenges

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

Page 10: Prepaid Payment Instruments: Implementation and Challenges

Thank You

12

Online Bill Payment category as the best site for 'Technology usage'

Pay Before Award -Best general purpose

spending card program

Product of the year ’09 - Multipurpose cash card


Recommended