Business and administrative expense prepaid cards in India to reach USD 3.3 billion by 2020; targeting niche areas is expected to drive growth

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Business and administrative expense prepaid cards have been growing steadily over the last three years across developing and developed markets. In recent times, focus has increased on targeting niche areas to drive growth. Consequently, prepaid card issuers are coming up with sector specific solutions. According to PayNXT360, prepaid card business and administrative expense category is expected to grow at a CAGR of 40% over the next five years.

Bangalore based fin-tech start-up firm Happay offering management solutions, has launched first of its kind digital marketing expense card in India in September 2016. The prepaid card has option to track, monitor and control expenditure on daily, weekly or monthly level. An upper limit and policies can be set on expenses. Spending on multiple platforms can be monitored at the same time. It is suitable for marketing teams as it is capable of providing financial summary and track expenses on real time basis. Data analysis is done conveniently that can be utilized for budget planning. The card can be used by loading it with a specific amount and linking to online tools and ad networks.

Internet advertising expenditure of India has been rising at a CAGR of 32% and it has been estimated that digital ad spending will cross USD 2 billion by 2018. Indian advertisers have spent around USD 9.3 billion in 2016 on paid placements in all media which is 15.6% higher than 2015 figures. This is expected to rise to USD 14.8 billion by 2020. However, finance department faces challenge in terms of putting together expenses on a daily basis. Close to 52% marketers claim that proving ROI on marketing activities is a challenging task.

Happay has introduced a service that addresses this challenge. Funded by venture capital firm Prime Venture Partners (PVP), it has partnered with RBL Bank to provide its financial solutions. Over the years it has extended its services to more than 1500 SMEs and enterprises across various segments. Prepaid cards have been gaining popularity among mass consumers in India. Various retailers and players have been investing in prepaid card services. However, providing prepaid card services to companies in the digital marketing segment is a fresh initiative towards building up a new clientele base and business expansion scope which is expected to grow in coming five years.

To know more and gain deeper understanding of prepaid card industry in India, click here.