Zeta launches RuPay prepaid card; commercial prepaid card expected to reach US$ 2.1 billion by 2021

Print

Email

Zeta, the India-based employee benefit provider has partnered with RuPay to launch a new prepaid card named Zeta Super card for employees. The prepaid card can be used to make payments at over 1.2 million RuPay enabled POS terminals. The company intends to expand its offering to employees in public sector undertaking. Zeta has also announced its partnership with National Payments Corporation of India to introduce payments via UPI, Bharat QR Code, and Aadhaar Pay. These collaborations will enable users in limited card network regions to access the benefits, without language barrier. Zeta has a customer base of 650 corporates with more than 100,000 users.

In order to provide a uniform regulatory framework for the prepaid payment instruments, the Reserve Bank of India has issued guidelines in March 2017. As per these directives, all paper meal vouchers currently issued by Sodexo and Ticket Restaurant are required to be issued in the form of reloadable prepaid cards. This said, the existing paper meal vouchers will cease to be valid post December 31, 2017. These directives are expected to be in line with the country’s plan to boost digital transactions.

Sodexo has launched its electronic meal vouchers and gift cards in the second half of 2016 and also partnered with payment technology firm First Data to build a dedicated payment terminal that will accept Sodexo meal vouchers. In September 2016, Yes Bank partnered with fintech start-up NiYO to launch Yes Bank NiYO Benefits Cards, which employees can utilize for accessing corporate benefits such as meal vouchers and gift coupons. NiYO is an integrated solution that includes prepaid card, mobile app, and digital account with multiple wallets. The digitization of meal vouchers will enhance the scope of start-ups which focus on delivering employee benefits via mobile devices as well.

According to PayNXT360, employee and partner incentive prepaid card market in terms of transaction value is expected to record a CAGR of 32.0% during 2017-2021 to reach US$ 2,095.8 million by 2021, increasing from US$ 690.2 million in 2017. Over the last five years the sector has recorded a CAGR of 34.2%, increasing from US$ 155.5 million in 2012 to reach US$ 503.6 million in 2016.

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