With an eye on the largely untapped prepaid travel card business in India, American Express has rolled out its global travel cards in the country recently. “The response to the soft launch was better than expected. We thought corporate travellers would be most interested, but we have witnessed a significant number of leisure travellers and students using the American Express Global Travel Card,” said James Mirfin, vice-president and general manager, global payment options at American Express India.
The international payments and settlements company has already launched the travel card in Australia, Brazil, South Africa and the US. “The next launch will be in China,” said Mirfin.
The revenue potential of prepaid cards in India will touch $218 million by 2015, according to Global Prepaid Exchange. The total market size and opportunity for the forex card category is $1.5 billion, which has been growing at 34 per cent since 2004. According to Mirfin, the expected annual growth for the forex card is 20 per cent over the next 3-5 years.
To boost card usage among globe trotters, American Express will provide merchant offers and discounts of up to 20 per cent in retail, dining and lodging across countries.
The company will provide emergency support services and access to doctors, lawyers, assistance on passport, and loss of luggage free of charge. In the event of the card being stolen or lost, 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.
According to data from the Indian Market Research Bureau, about 30 per cent of travellers use travel cards. Ninety per cent of the users are business travellers.
