How Indian corporate are driving the growth of prepaid cards?
Indian prepaid card market is touted to grow at a CAGR of around 40% during 2012-2017, according to RNCOS Research titled ‘Indian Prepaid Card Market Outlook to 2017’.’ The same study also identified that the market is mainly driven by corporate customers looking for an easy and streamlined way of processing funds.
Employees find it convenient to pay through prepaid cards instead of cash/cheques while employers find it easier to disburse money through prepaid cards. Employers are also able to use prepaid cards for specific purposes, for example:
- Travel Cards
- Payroll Cards
- Meal Cards
- Gift Cards
The evolution in the usage of prepaid cards
One of the newer uses for prepaid cards is controlling employee spending. Prepaid cards can be loaded with the required amounts, and there is no chance of overspending. The risk involved is minimal as employers and managers have complete control, even to the point of restricting where these cards can be used.
It is also much easier for employees to use these cards for a variety of different purposes including purchases online and at local stores, as well as withdrawing funds from ATMs whenever required, in addition to case-specific cards like the ones mentioned above.
Why prepaid cards are better than corporate credit cards
While corporate credit cards are a possible alternative for business expenses, there is a high risk for almost all organisations. Corporate cards offer convenience, yes. But, with very limited control measures, there is a possibility for exploitation through fraud and misuse of these cards. In the case of loss or theft of the card, there is no failsafe to instantly block the card and protect oneself. Additionally, it is not possible to curb unauthorised employee spending with corporate credit cards.
The introduction of prepaid debit cards has proven provided companies with the convenience of corporate credit cards, while at the same time, additional security measures against fraud and misuse, as stated above. It is the perfect blend.
The new generation of prepaid cards…
Happay’s expense management cards are the new generation of prepaid cards. When combined with Happay’s automated expense management system, employers and admins are able to track expenses as they occur, control the funds available on each individual card in real time, deactivate cards with the click of a button, as well as restrict the usage of each card. Additionally, there are also powerful analytic tools for insights into the business expenditure incurred.
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