Here’s how reloadable prepaid cards can make daily transactions simple for millions of unbanked people and businesses in India, and ensure financial inclusion.
A survey published by the University of Illinois in 2020 indicates that more than 190 million Indians still do not hold formal bank accounts and primarily depend on cash-based transactions.
Owing to this huge number, India is only second to China in the world for having so many people without bank accounts. While this number is a clear indication of the progress needed in the banking sector, it also indicates the opportunity for new products that can service this unbanked population. One such product that can truly digitalize the unbanked population and introduce them to the banking channel is prepaid cards.
InstantPay, a neo banking platform, is taking mammoth strides towards this direction. In today’s blog post, we will share everything about prepaid cards with you and the many benefits they offer. So, let’s get started.
What Is a Prepaid Card?
Prepaid cards are fast emerging alternatives to cash and debit cards all around the world and as a developing country, India needs to embrace the use of prepaid cards as this helps both individuals as well as businesses to manage their cash flow and expenditures.
In simple terms, a prepaid card can be loaded pertaining to the user’s requirements which enables users to transact on online websites and at POS terminals at merchant outlets in India. The advantage of the prepaid card as compared to a debit or credit card is the fact that, since a prepaid card is loaded with a certain amount before usage, the user can keep better track of their expenses and also not worry about monthly bills.
Prepaid cards for business expenses or personal expenses are the future as these will help millions of unbanked Indians to gain better control over their finances. Although credit and debit cards might look like the ultimate solution now, prepaid cards are the best instruments for financial inclusion, when it comes to those who are socio-economically disadvantaged or are not aware of complicated banking processes.
So, if you want to get a prepaid card for yourself or your business, contact InstantPay today.