The India chapter of Prepaid International
Forum has a number of initiatives to drive the implementation
of cross-industry prepaid payment programmes. PIF India chairman
Kusal Roy and co-chairman Amit Sethi explain the scope and
objectives of the projects currently underway.
Go deeper with GlobalData
The
projects organised India chapter of Prepaid International Forum
(PIF) have been selected according to a strict set of criteria,
such as having high market need and being readily actionable.
Of the two projects already
short-listed for launch, one is focused on providing a means for
the government to distribute various conditional subsidy payments
to beneficiaries that restrict usage and prevent misuse.
Roy says: “The intention is that
this will ultimately lead to a government department initiating a
pilot scheme using a prepaid as viable and cost effective
alternative to cash-based disbursements.”
Another project shortlisted for
launch deals with the issuance of prepaid payment products as an
alternative and low-cost solution for the financially excluded.
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By GlobalDataRoy says the objective of the
second short-listed project is to interact with industry
stakeholders and regulatory bodies.
This is to promote the inclusion of
rupee-denominated prepaid card numbers, and particularly prepaid
cards serving the under-banked segment, as part of no-frills
accounts.
“The project will advocate the use of prepaid cards as an
alternative, low-cost solution for servicing a remote and widely
distributed customer segment in place of the traditional banking
network,” he says.
The projects are being executed by
a consortium of PIF India member organisations comprising banks,
global and national schemes and nonbank issuers.
The aim is to engage with industry
stakeholders such as the Unique Identification Authority of India
(UIDIA) and the relevant supervisory and government bodies.
The timelines for each project were
due on 25 August. It is expected that each project will be
completed within 6 months. Additional projects under review include
those covering the transit area, merchant acceptance, prepaid
programme management and mobile payments. These will be assessed by
members of PIF India at the annual general meeting.
Sethi says regulation in prepaid is
progressive and explains that like many other markets, consumer and
stakeholder awareness of prepaid as an alternative, low-cost
payment solution is fundamental to driving prepaid acceptance and
adoption.
In
response, he says PIF India has identified the need for a
consolidated cross-industry approach and a need for the prepaid
industry to continue to interact with regulatory and government
bodies.
He adds that technology can be
considered another enabler for encouraging prepaid adoption in
India given that prepaid is a thin margin, scale-driven business,
serving the unique needs of multiple vertical markets.
“Global technology partners with a
strong local presence can help play a crucial role in prepaid
adoption,” says Sethi.
“They can provide in-house or outsourced technology to help
prepaid issuers reduce costs, automate processes, understand
customer behaviour and create business models that add value to
both the prepaid business and the consumer.”
