Boston, MA -- (SBWIRE) -- 06/12/2012 -- Prepaid cards are gaining popularity at the expense of credit cards in India. This can be indicated by the fact that the number of outstanding credit cards in the country declined from 27.6 million in March 2008 to 18 million in March 2011. Banks are also being cautious in their promotion of credit cards as they fear a credit default. Instead Indian banks are focusing on promoting prepaid cards. A rising number of retail companies and brands in India are now offering prepaid cards as a strategy to retain customers and increase sales. Prepaid cards are increasingly being used by companies as a tool to retain customers and also ensure regular sales. The lack of consumer awareness about the types of prepaid cards that are available in the country is one of the main challenges preventing wider prepaid card usage in the country. Furthermore, prepaid cards have traditionally not been as aggressively marketed by banks as debit and credit cards. However, this trend is now changing, as the high growth recorded in the prepaid cards market is encouraging more companies and banks to provide prepaid card services. As such, Indian banks are now undertaking aggressive marketing and promotion activities to increase prepaid cards awareness in India. The Indian prepaid cards market is highly consolidated among three leading companies: Axis Bank, ICICI Bank and Itz Cash Card.
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- The Indian prepaid card market is expected to continue growing strongly over the forecast period (2012-2016). The volume of Indian prepaid cards is projected record a CAGR of 40.6% over the forecast period.
- The Indian prepaid travel cards category increased in value at a CAGR of more than 50% during the review period. This growth is being driving by strong demand from corporations, which account for the majority of the total travel cards category value.
- A rising number of retail companies and brands in India are now offering prepaid cards as a strategy to retain customers and increase sales.
- Indians traditionally prefer conducting financial transactions through cash rather than payment cards. Almost 97% of the total retail transactions in India are cash-based. However, this is changing gradually as the younger population is more comfortable using payment cards.
- The Indian prepaid cards market is highly consolidated among three leading companies: Axis Bank, ICICI Bank and Itz Cash Card.
- This report provides a comprehensive analysis of the prepaid card market in India.
- It provides current values for the Indian prepaid card market for the report's review period 2007-2011 and forecast figures for the 2012-2016 forecast period
- It provides current values for the various categories within the Indian prepaid card market for the review period and forecast period
Companies Mentioned in this Report: Axis Bank, ICICI Bank, State Bank of India, Punjab National Bank, HDFC Bank, Union Bank of India, Canara Bank, Bank of India, Andhra Bank, Corporation Bank, Itz Cash Card, Done Card Utility Ltd
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