Fare collections in mass transit systems across the globe are evolving from cash-based fare collection systems to contactless smart card-based systems with transport authorities looking for means to make fare collections easier, cheaper and more flexible. PayNXT360, expects public –private partnership to be one of the key drivers for growth of open loop prepaid cards in the transit and tolls segment. Also, these partnerships are mutually beneficial for both the parties as transport corporations can benefit from technology expertise and offerings of the banks to create simple and hassle-free experience for commuters; while banks can tap millions of commuters, who might not be customers, to cross-sell their products and services. PayNXT360 expects open loop transit and tolls segment in India to grow at a CAGR of over 43% over the next five years (2016-2020).
Axis Bank, India- based financial institution, in partnership with Bengaluru Metropolitan Transport Corporation (BMTC), has pioneered the innovation of cashless solution by launching the Axis Bank BMTC smart card. This open loop EMV contactless smart card, which is readily usable to pay for fare in BMTC, is in line with the Reserve Bank of India’s directives on prepaid card for mass transit system and is more than a travel card. Apart from mass transit system and customized for use at BMTC, the card which is interoperable in nature can be used at any Rupay enabled merchant terminal in the country for a purchase transaction.
The card that has functionalities of a travel card as well as of a shopping card, can be issued by capturing the minimum mandatory requirements of the customer for balances below INR 10,000 (US$ 148). However, for balances between INR 10,000 (US$ 148) to INR 100,000 (US$ 1,480). The commuter can recharge the card at BMTC issuing points, Axis Bank ATMs, Web, via conductors on bus or Axis Bank merchant terminals, eliminating the process of waiting in long queues to get bus passes.
Earlier in the year 2014, ICICI Bank also launched similar Combo Prepaid card, co-branded by UPSRTC that has functionalities of a travel card as well as of a shopping card.
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