The international payments and settlements company, American Express has plans to tap the prepaid travel card business in India. The company has rolled out its global travel cards in India on a pilot basis.
"The response to the soft launch was better than expected. We though corporate travellers would be most interested but we have witnessed a significant number of leisure travellers and students also using the American Express Global Travel Card," said James Mirfin, vice-president and general manager, Global Payment Options at American Express India.
Before coming to India, American Express has launched the travel card in Australia, Brazil, South Africa and the US. "Next launch will be in China," said Mirfin.
According to the the Global Prepaid Exchange, the revenue potential of prepaid card in India will be $218 million by 2015. The total market size and opportunity for the forex card category is $1.5 billion which has been growing at 34% since 2004. Mirfin said that the expected annual growth for the forex card is 20% in next 3-5 years.
In order to boost the card usage among globe trekkers, the company is providing merchant offers and discounts of upto 20% in retail, dining and lodging across countries. American Express will also provide emergency support services and access to doctors, lawyers, assistance on passport, loss of luggage free of charge. Also, in case of theft or loss of card, the company will provide card replacement and emergency cash to the users.
The global prepaid travel card has a three year life span and the unused funds can be transferred to another card. The card can be availed from money changers in dollars, pound sterling and euro.
As per data from the Indian Market Research Bureau, about 30% of travellers use travel cards with 90% of usage seen by people travelling for business purposes.
