Emerging Opportunities in the Indian Prepaid Card Market: Market Size, Strategies, Products and Competitive Landscape
The prepaid cards are gaining popularity at the expense of credit cards in India. This can be indicated by the fact that the number of outstanding credit cards in the country declined from 27.6 million in March 2008 to 18 million in March 2011. Banks are also being cautious in their promotion of credit cards as they fear a credit default. Instead Indian banks are focusing on promoting prepaid cards. A rising number of retail companies and brands in India are now offering prepaid cards as a strategy to retain customers and increase sales. Prepaid cards are increasingly being used by companies as a tool to retain customers and also ensure regular sales. The lack of consumer awareness about the types of prepaid cards that are available in the country is one of the main challenges preventing wider prepaid card usage in the country. Furthermore, prepaid cards have traditionally not been as aggressively marketed by banks as debit and credit cards. However, this trend is now changing, as the high growth recorded in the prepaid cards market is encouraging more companies and banks to provide prepaid card services. As such, Indian banks are now undertaking aggressive marketing and promotion activities to increase prepaid cards awareness in India. The Indian prepaid cards market is highly consolidated among three leading companies: Axis Bank, ICICI Bank and Itz Cash Card.
Key highlights of this title
- The Indian prepaid card market is expected to continue growing strongly over the forecast period (2012–2016), to reach a value of US$47.5 billion in 2016. The volume of Indian prepaid cards is projected record a CAGR of 40.6% over the forecast period.
- The Indian prepaid travel cards category increased in value at a CAGR of more than 50% during the review period. This growth is being driving by the strong demand from corporations, which account for the majority of the total travel cards category value.
- A rising number of retail companies and brands in India are now offering prepaid cards as a strategy to retain customers and increase sales.
- Indians traditionally prefer conducting financial transactions through cash rather than payment cards. Almost 97% of the total retail transactions in India are cash-based. Although this is changing gradually, and the young population is comfortable using payment cards.
- The Indian prepaid cards market is highly consolidated among three leading companies: Axis Bank, ICICI Bank and Itz Cash Card.
- This report provides a comprehensive analysis of the prepaid card market in India
- It provides current value for the Indian prepaid card market for the report’s review period 2007–2011 and forecast figure for the 2012–2016 forecast period.
- It provides the current values of the various categories within the Indian prepaid card market for the review period and forecast period.
- It covers an exhaustive summary on the key trends, drivers and challenges affecting the Indian prepaid card market
- It outlines current regulatory framework in the industry
- It lists the strength, weakness, opportunities and threats (SWOT) involved in the Indian prepaid card market
- It details the marketing strategies used by various companies
- It profiles the major banks and companies in the Indian prepaid card market
Reasons to Purchase
- Make strategic business decisions using top-level historic and forecast market data related to the Indian prepaid card industry and each category within it
- Understand the key market trends and growth opportunities within the Indian prepaid card market
- Assess the competitive dynamics in the Indian prepaid card market
- Gain insights in to the marketing strategies used by the banks and prepaid card companies
- Gain insights into key regulations governing the Indian prepaid card market
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