July 05, 2010

Prepaid International Forum's India Chapter acts to educate consumers

London, UK  – International trade body Prepaid International Forum (PIF) today announced that the India chapter of the forum is to roll out a comprehensive consumer education programme to build awareness and adoption of prepaid products and services in the country.  It follows a survey of consumers conducted by PIF India member organisations which revealed that consumer awareness of prepaid is very low. Commenting on the rationale behind the initiative PIF India Executive Committee member Brajesh K. Varma explained “one of the many advantages of prepaid is that it represents a low cost, basic banking product that provides an entry point to a range of financial services for the unbanked and under-banked. Prepaid cards also provide convenience, security and control for segments such as youth, payroll and in the distribution of social benefits. As Chair of the PIF India Consumer Education Group I am leading a group that believes in the importance of promoting these benefits.” As PIF India prepares to celebrate its first anniversary in August 2010, members met in Mumbai on 28 April to consider the key components of a nationwide prepaid awareness campaign. There was support for thematic advertorials including the promotion of gift cards ahead of festival periods such as Diwali and the promotion of general purpose prepaid cards at Point of Sale and through bank branch staff. PIF India Chairman Sachin Khandelwal said “This is a very important initiative and one that is being planned when consumer spends are at a high and there is a lot we will be able to adequately  promote prepaid for the benefit of all stakeholders.” PIF India’s consumer awareness programme is just one of many initiatives being developed by the Chapter in India. Launched in August 2009  under the patronage of leading global payments solutions provider TSYS®, the Chapter has a rapidly expanding membership representing issuers of prepaid products and services, payment networks and processors. The Chapter actively represents the interests of members with regulators and other government bodies through the Chapter’s Legal & Regulatory Working Group and helps members to identify robust and profitable business models through the sharing of best practice with PIF members from around the world. Amit Sethi, Managing Director of TSYS in India and South Asia said “TSYS recognises that the opportunity to advance the acceptance and adoption of prepaid in India is vast. TSYS is well positioned to help implement and support guidelines and initiatives that will drive this important market forward.”  About PIF India   Prepaid International Forum (PIF) launched a regional Chapter for India in August 2009 under the patronage of leading global payments solutions provider TSYS®. Members include ICICI Bank, Axis Bank, HDFC Bank, TSYS, Yes Bank, Union Bank of India, State Bank of India, ItzCash, TimesofMoney, Deutsche Bank, Standard Chartered Bank, Visa, Accor Services and Barclays Bank.  For further information please contact: Diane Brocklebank Head of Member Relations T: + 44 (0) 20 3008 8423M:+ 44 (0) 7834 573 481E: diane.brocklebank@prepaidforum.org

April 22, 2010

Boanerges Ramos Freire assumes Brazilian Chapter's presidency of institution that encourages the use of prepaid

Prepaid International Forum's Brazil & India Chapters collaborate to drive prepaid forward

London, UK - Members of Prepaid International Forum (PIF) in Brazil and India met via live video conference on 10 December 2009 in the first formal exchange of ideas and thoughts on prepaid in two of the largest BRIC markets. The group, which included members interacting live from São Paulo and Mumbai, exchanged knowledge and best practice about the two relatively similar economies.   

For more than 60 minutes, members identified some of the key drivers propelling the growth and adoption of prepaid products and services, which include industry innovation in the payments sector and the role prepaid products play in promoting financial inclusion by offering a potentially low-cost solution for acquiring new customers. Participants also discovered that they share common opportunities and challenges ranging from the identification of robust and profitable business models for prepaid in each country, to the development of strategies to mitigate risk and unfavorable publicity and the need to achieve the optimum legal and regulatory framework to drive prepaid growth.  

Glaucon Pereira, CEO of ATIVI Telecomnet and Chairman of PIF Brazil said, “It was interesting to note that for both markets, the potential for prepaid to facilitate social inclusion is vast in that prepaid offers a secure, low-cost medium to distribute social benefits and pensions”.  

Participants also discovered that there are challenges unique to Brazil and India, especially around the legal and regulatory framework. In response to a question from PIF India regarding the regulatory enablers in Brazil, Antonio Giacomini a partner with law firm Andrioli E Giacomini Advogados, said, “ Whilst prepaid in Brazil is more evolved, with long-established meal programmes for example, few regulations for prepaid exist, forcing prepaid companies to adapt and create new ways to evolve in the prepaid space.” Vinayak Prasad, Head of Cards with ICICI Bank said this was in stark contrast to India: “Whilst India is in the nascent stage of development with enormous potential for growth, the payments industry is evolving slowly with mobile payments expected to be the catalyst for likely quantum growth.”  

Commenting on the live link-up, Amit Sethi, Managing Director for TSYS India and South Asia and Vice Chairman of the PIF India Chapter said, “The coming together of two Chapters opens the door for future collaboration and information exchange as the payments sector in both markets evolves. It can also be seen as the first step to driving prepaid market growth in both markets for the benefit of all stakeholders”. Mr Sethi also highlighted the similarities between both markets, particularly in the area of mobile payments. He added, “There remains a huge potential for mobile payments in Brazil and India, given the high pentration rates. With 500 million mobile subscribers in India and  more than 165 million in Brazil, the opportunity for delivering prepaid solutions by mobile phones is vast." 

Established in 2007 in the United Kingdom, PIF has been a catalyst for the creation of international standards and best practices in prepaid commerce. The reach of the forum continues to expand across the world as developing prepaid markets derive value from information exchange, sharing of best practice and the implementation of guiding principles and codes of best practice.  

The PIF India and Brazil Chapters were both incepted in 2009 under the patronage of leading global payments solutions provider TSYS®. Commenting on the evolution of PIF in India, Sachin Khandelwal, Senior General Manager, ICICI Bank and Chairman of PIF India said, “The growth of the PIF India chapter represents global recognition of India as an emerging prepaid market with tremendous potential for growth. Since its launch, PIF India has broad industry representation and an active membership base representing leading Indian public sector, private sector and multinational banks in addition to global and national schemes. ”    

Prepaid International Forum announces launch of new India Chapter

The India Chapter will be launched under the patronage of TSYS® and it is anticipated there will be attendees from key acquirers, card issuers, banks, other commercial associations and regulators. Mr Sachin Khandelwal, Senior General Manager, ICICI Bank has been appointed as Chairman of PIF India.

Mr Vinayak Prasad, Head Cards Group, ICICI Bank said, "Recent trends in prepaid and debit cards indicate a growing acceptance of plastic in India. ICICI Bank is one of the largest players in the prepaid cards business with presence in domestic payroll cards, international travel cards as well as prepaid fleet cards. India has a large opportunity to service with innovative solutions in remittance, fleet, government benefits, and tolling solutions and many others. We are hopeful that the forum will bring in the desired impetus in the current market"

With a population of 1.2 billion individuals, an increasing number of young adults and with only 20 percent of adults having a payment card of any kind, India represents an attractive market for providers of prepaid solutions. Already, some prepaid operators have been quick to introduce solutions such as prepaid cards, gift cards, multi-currency travel cards, meal and payroll cards.

In January 2009, recognising the significance of e-money and prepaid cards, the Reserve Bank of India published its draft guidelines for Prepaid with the purpose of providing a framework for the regulation and supervision of all parties involved in the issuance of prepaid payment instruments in India. This framework will be one of the items to be discussed at the inaugural meeting in August along with the chapter's terms of reference, proven methods pf operation and innovative case studies. Future meetings will also focus on PIF's research and analysis of successful and unsuccessful business models, enabling Indian members to take away valuable lessons, best practices and business models for new revenue-generating value propositions.

Amit Sethi, Managing Director of TSYS in India and South Asia, said "The launch of a new India Chapter represents global recognition of India as an emerging prepaid market with tremendous potential for growth and financial inclusion. With more than 80% of transactions taking place in cash, TSYS recognises this opportunity and as a leading prepaid card processor is keen to share best practices and help implement local guidelines and solutions that will continue to drive the market forward."

Established in 2007 in the United Kingdom, the PIF has been a catalyst for the creation of international standards and best practices in prepaid commerce. The reach of the forum has expanded across Europe and internationally and includes developing prepaid markets such as Australia & New Zealand and Brazil, where new chapters have been set up locally. Today, members include key issuers, vendors and programme managers actively involved in the prepaid industry. PIF Chairman Chris Reddish welcomed the launch of the India Chapter. He said " PIF is establishing itself as a truly global association and today's announcement is further evidence of its relevance in a rapidly expanding market. We will continue to address key areas of policy and look forward to sharing expertise and experience with our colleagues in India."

T: + 44 (0) 20 3008 8423