Developing country like India is home to more than two billion unbanked people who have to rely on cash or informal financial services to conduct transactions, as formal banking systems find it difficult to serve low-income customers, especially those living in small towns and cities here. However, businesses and governments alike are trying to extend the reach of financial services such as bill payments, person to business transfers and online payments through prepaid cards.
Thane Municipal Corporation (TMC), the governing body of the city of Thane in the Indian state of Maharashtra, recently announced the plan to launch a prepaid utility digicard with an objective to make payments for various taxes and services easier for the residents of Thane. With this facility, the citizens do not have to come to TMC office or visit banks to make their tax payments. The prepaid digicard will not only allow users to make several utility payments including civic taxes but will also facilitate shopping and other ticketing avenues. TMC plans to set up over 1,700 centers in the city from where the residents can buy these prepaid cards and get them recharged periodically.
The administration expects to attract nearly 1 lakh consumers towards this new facility after its launch. Those who do not have a bank account too can take advantage of this facility. Any resident aged over 18 years and having an Aadhar card, can take advantage of the facility and recharge amounts up to INR 10,000.
PayNXT360 believes successful implementation and acceptance of prepaid digicard will help in adoption of prepaid cards by other government bodies in India. Also, it can help both business and government to enter the prepaid card market in order to leverage on the cross-selling opportunities as well as expand their customer base, resulting in better cost management and higher ROI.
To know more and gain deeper understanding of how prepaid card industry is shaping up in India, click here.