Payment firms to flood India with card variants

The rise in spending power in India, Asia's third largest economy, has resulted in the proliferation of card variants. Remittance card, small business card, purchasing card, prepaid card, co-branded card "" the payment companies are pulling out all stops to unleash a sheaf of card variants.

Payment companies such as MasterCard International and Visa International are looking at introducing these products in India.

"Average spends on credit cards by a consumer in India is estimated at around Rs 14,000 per annum and around Rs 1,800 annually on the debit card," said an industry expert.

He added that the spends on the credit card is increasing by 60 per cent, while retail sales on the debit side is increasing by around 95 per cent per annum.

Visa is planning to launch a remittance card in the country in January, 2005 and the small business card and the purchase card during the next fiscal year.

The remittance card enables all remittance money to be credited into a Visa Card. This card can be used to withdraw money across ATMs in India or for purchases across merchant locations.

"The remittance card is expected to see business volumes to the tune of $200 million in the first year of operations," said James G Murray, executive vice-president, Visa International.

"We also see a huge potential for the small business card and purchase card in India. This segment is expected to register sales volume of about $250 million per annum for Visa in India" said Murray.

The small business card and purchase card can be used by corporates and government agencies for all business needs from inventory to office supplies, personal computers, subscriptions, mail transportation services, printing, repair or purchase of vehicle or spare parts.