Launched in August 2021 by Prime Minister Narendra Modi, e-RUPI is a new digital payment solution for seamless transfer of funds, without the need for any card, digital payments app, internet access or even a bank account. 

e-RUPI is a cashless and contactless payment method done through an e-voucher sent to beneficiaries via QR Codes or SMS strings, which can be redeemed/used for specific purpose only, at the service providers. It connects the sponsors of the services with the users and service providers digitally, with no physical interface required.

These vouchers will be both person and purpose/end-use specific, for ex: If they are issued by government for availing any medical service at a particular hospital, then they can be redeemed only for that. In other words, it will work as a closed system PPI.

How e-RUPI works?

e-RUPI is developed by NPCI on its UPI platform, with onboarded banks as the issuers. The government or any private corporate will approach the partner banks with the details of specific beneficiaries to whom the payments have to be made and the purpose of such payments.

Each beneficiary will be uniquely identified basis their mobile number and voucher will then be issued and delivered (in the form of QR Code/SMS) in the name of that beneficiary only. 

Objective of e-RUPI

e-RUPI is expected to serve the following objectives:

• The long-term vision of e-RUPI is to reach the unbanked population, include them into a formal financial system and reduce the digital gap in the country
• To provide an equal access to various healthcare, education, and other benefits to each citizen of the country
• Transparency in transactions, as the end-use of the funds can be easily tracked
• Will guarantee that the money is used for the purpose for which it was intended, unlike traditional bank account transfer where it is possible that the funds are used for other purposes

Further, with the government in the process of establishing a digital currency for the Central Bank, e-RUPI can be used to emphasize the flaws in the current digital payment infrastructure which is crucial for the development of digital currencies in future. 

Application of e-RUPI

Currently, this is a platform launched as a government initiative for leak-proof distribution of welfare benefits to eligible beneficiaries. It aims to provide services under various schemes of the government including Ayushman Bharat Pradhan Mantri Jan Arogya Yojana and other subsidy programs, etc. 

However, in future even private entities can use this voucher-based payment method for providing services to their employees for travel, healthcare, and other such purpose-specific expenses.

It can also be used to provide credit to first-time borrowers, where the end-use of funds is specific and thereby evolving the digital lending landscape in the country.

A move towards digitalization and introduction of Digital Currency

While e-RUPI is in itself not a digital currency, as it is still backed by Indian Rupee as the underlying asset and is purpose specific, it is definitely a move towards introducing digital currency/cryptocurrency in India.

Both e-RUPI and cryptocurrency work on similar principle of enabling end to end digital transactions and removing physical intermediaries thereby ensuring transparency, data security and overall reduction in operating costs. 

What lies ahead?

With the introduction of e-RUPI, it is clear that the government is in support of new digital initiatives, as they expect that India has tremendous potential to change the way they transact and pay for different services. This is supported by increasing adoption of digital payments for small-value transactions, especially by the non-digital customer segment in the country.

This backed by India’s high currency to GDP ratio, validates that such digital initiatives and crypto assets/digital currencies can co-exist and position India as the front runner towards forming a complete digital economy. Further, e-RUPI will encourage the use of PPIs in India for better channelization & monitoring of funds, providing an opportunity for Fintechs driving digital payment solutions to design new products build around e-RUPI/digital currencies and such kind of digital solutions.

Have you recently started receiving mails/SMS from various banks and service providers asking to re-register your e-mandates for automated payments such as OTT, newspaper subscriptions, etc?. This is because of the new RBI guidelines with regard to recurring transactions, coming into force from October 1, 2021. 

What are these new RBI norms?

In another step to secure digital transactions via credit/debit card, PPI or UPI, RBI has implemented the new auto debit rules. As per the new norms, all such transactions will have to be further secured with an additional factor of authentication (AFA) – 2-factor authentication. Any transaction, whether domestic or cross-border, using cards, without AFA, would be discontinued.

New rules for Automatic Payments – A Snapshot

Source: RBI

Further to this, the bank/issuer is required to take additional information such as the validity period of the e-mandate, etc at the time of registration. And if required, the facility to modify the validity period, shall also be provided.

The banks also need to send a post-debit notification to the cardholder, once the auto-debit is processed. And, finally set up a redressal mechanism to address customer grievances related to this.

What will be its impact on payments?

This move is introduced in an attempt to protect consumers with regard to safeguarding of pre-stored data relating to cards and avoiding digital frauds. And especially those consumers who hastily give their consent to unnecessary automated payments and fall prey to data breaches.

With the new guidelines coming into implementation, all such recurring payments need to be reviewed and re-registered with respective issuing banks to avoid transaction failure.

However, these will only impact standing instructions (SIs) on cards. The automated instructions under UPI Autopay, e-NACH and other SIs to banks will not be impacted.

The directive will empower card users and will give them more control over their transactions. They can now determine and set the amount, velocity, etc, thereby managing such recurring mandates efficiently.

Way forward

For end consumers

Initially, this will impact customers to some extent, as the previous payment mode was meant to provide them with a seamless experience (especially for transactions above the INR 5,000 cap in B2B usage). Also, such payments may move to other alternate modes of payment such as e-NACH, UPI, etc for a better customer experience. However, in the long run with awareness they will realize that such regulations are for their benefit as it will eventually increase the security on card transactions. 

For Businesses

These guidelines will encourage businesses particularly, small & medium sized businesses to reach out to untapped customer base and build new business models in and around subscription payments and help grow this market multi-fold in the coming years.

To sum it up, the entire payments ecosystem is going through changes due to these regulations and all stakeholders are getting impacted in one way or the other. It will require banks/card companies/fintechs in the payments space to provide such portals to comply with the new regulations. However, there is still a long way to go as not only the banks/card companies, but the merchant/merchant aggregators’ ecosystem also needs to be in a state of readiness for its successful implementation. 

From the past few years, there has been an increase in the number of sectors like Travel, Retail, SAAS, etc expanding themselves into financial services.

Well, Banking and Fintech is a collaboration that is still very new in the Indian economy. The new normal has definitely shaken up the world and it has impacted the traditional banking system. From visiting a branch to opening an account online has been a major revamp in the industry – to be honest, this is just the start.

New Fintechs every day are disrupting the old traditional ways of banking and challenging our generation to think something out of the box now and then.

BaaS is a vast topic and the meaning of this is changing as per the ask of the end customer every day. Let’s try addressing the details one by one.

What is BaaS? 

In layman’s terms – BaaS is a process that allows fintechs and third parties to connect with banks via APIs. From opening an account to creating FD’s, etc everything can be done with the help of BaaS. 

Offering these services to an end customer is not so easy and requires a lot more regulatory processes to be in place. For eg: issuing prepaid cards – requires PPI license, giving credit to customers – requires NBFC license, and so on and so forth.

How does this work?

Banks obviously have licenses to offer various services, so they expose their systems to BaaS providers and these providers in return pay to banks for using their services. BaaS will allow businesses to fit the financial technologies and then the businesses will provide new solutions to end customers as per their needs and requirements.

Generally, the BaaS model begins with Fintechs, banks or Third party Providers paying fees to the BaaS platform. The financial institutions will open up their APIs to TPPs, thereby giving permission to access the systems and information required to build new banking products or offer white label banking services. 

Let’s understand how this is different from old traditional ways of banking

In today’s era, opening an account is just a matter of a few minutes compared to the days where opening a bank account required walking to the branch. 

Today, if someone has to send money to their children/relatives sitting abroad – trust me, it’s not a task anymore. Of course, this requires the regulatory practices to be in place, however, there are fintechs who are supporting this while simultaneously abiding by the regulatory guidelines.

To change the entire structure in the back end and front end for banks is not an easy task and requires a lot of investment. In this case, the banks approach BaaS or Tech service providers to plug in the system and provide end-to-end services to the customer. 

Future of BaaS

Everyday the financial industry is coming across a new development, the landscape is changing rapidly. Banks, Fintechs and businesses are coming across new requirements frequently. Reaching out to new segments of customers and solving a problem statement is also a new revenue stream for the banks as well as fintechs. 

Banks teaming up with the service providers and reaching out to end customers for providing innovative solutions is much required. APIs and applications play a major role in bringing these changes and need to be developed in a responsible way to provide long-term efficiency and scalability.

Picture this scenario – a collections agency appointed by a lender has hired 1000+ feet-on-street (FOS) workforce to facilitate collections from delinquent customers. The dilemma in front of the agency is that almost 60% of these FOS contract workers don’t have a formal savings bank account. How do you manage to pay their salaries? 

In recent times we have witnessed the rise of the gig economy which consists of consultants, freelancers and  blue collared workforce. As per a NITI Aayog report, in India, the gig workforce is expected to expand to 2.35 crore workers by 2029-30. According to Statista’s 2021 report, India has the second largest unbanked population in the world at a staggering 20% of the population. The above facts and figures coupled together provide a massive opportunity for financial inclusion, perhaps one of the reasons why India has seen green shoots in the Fintech sector, which at large, is trying to solve for the financial inclusion of the new to bank & new to credit base of the population.

The answer to the above challenges lies in a payroll card. Payroll cards are prepaid cards that employers use to load an employee’s salary or wages in lieu of a formal cheque. The funds are distributed each payday, providing an alternative to direct deposit for those who cannot or will not hold a traditional account. Payroll cards are always reloadable, which means a worker uses the same card all the time instead of being issued a new card each payday.

Employees can conveniently access their wages with this setup without the need to maintain an account with a financial institution. They can receive their funds instantly, sometimes up to 48 hours early, depending on the issuer of the card.  They don’t need to worry about carrying large sums of cash to purchase necessary items. This also helps enterprises and MSMEs to promote digitisation of payments in-line with the government’s Digital India mission. 

The Pros and Cons of Payroll cards

As with any system of compensation, organisations and employees need to be aware of the  pros and cons of payroll cards before using or implementing this type of system. Here are the crucial points to consider:

Benefits of Payroll cards:

Challenges of Payroll cards:

In conclusion, Payroll cards become the logical choice for enterprises and corporations who have a sizable workforce new to the financial ecosystem. They are easy to issue, can be modularized as per the requirements of the enterprise and help in fund management both for the employees and the employer. This can also become an alternate revenue channel for enterprises.

At CARD91, we offer a flexible, robust & scalable full- stack card issuance platform. We work closely with Fintechs & enterprises to help them launch new age card programs in the shortest possible turnaround time (TAT) supporting multiple use cases such as Expense Management & corporate cards, and Payroll Cards to name a few. Our platform is agile which helps us stitch together a custom card program as per the needs of the client. 

Still struggling with employee & vendor payouts? Get in touch with sales@card91.io to understand how we can help you transform your payouts to your employees & vendors.

Authored by Bhushan Sawant, Director, Sales & Partnership

Technology in finance has been around for more than half a century. With the turn of the century, it became even more critical as a key differentiator, moving up from a mere enabler. However, many financial services firms continue to struggle with their legacy tech and the need to stay relevant, mainly due to the slow creation and adoption of modern financial technology solutions. This is where the FinTech industry is playing a critical role in bringing new-age customer and business-centric innovations into the industry.

The question to ask now is- Is modern technology in finance and banking or as we call it Fintech any different from traditional banking technology and why is it positioned as a unique sector? Over the past 50 years, technology has “assisted” traditional financial institutions. However, there has not been any dramatic change in the products being offered or their target market.

FinTech- Accelerating API-driven innovation in the Banking and Financial Ecosystem

One of the key levers of the growth of Indian Fintech is its robust and scalable technology that caters to all kinds of customer segments. The development is aided by entrepreneurs who bring in innovation, supported by a pool of deep talent.

The trend that started with Fintech companies specializing in payment services, digital lending, saving accounts, wealth management and remittances space, is now disrupting the Indian banking and financial landscape in many ways.

Primary enablers of fintech growth

As we popularly call it, the India stack has been the key enabler for the growth of the fintech ecosystem. While demonetization and the pandemic provided tailwinds to the industry by increasing customer acceptance, the India Stack, regulatory support like CKYC, Video KYC, etc. made things easier to adapt to the compliance requirements. These, in turn, helped accelerate fintech innovation.

While the pandemic accelerated the global economy’s digitisation, India’s fintech sector riding on open APIs platform has ushered in a new era of reimagining financial services by prioritising customer experience and accessibility to banking services.

Post-pandemic, banks/financial institutions have started to revisit their strategy of digitizing customer experience without compromising on the quality of service delivery, regulatory compliance, and cost. We are now witnessing more collaborations between fintech that are building API-driven digital platforms and Banks. The partnership ranges from basic customer onboarding journeys to offering last-mile delivery of banking services.

This partnership has furthered the government’s stated agenda of financial inclusion. It has changed every aspect of the banking industry, including payments, infrastructure, access to financial services and distribution.

The popularity of API banking systems is driving more innovation, particularly in the fintech ecosystem. The API technology essentially allows technology infrastructure players to plug into a Bank’s legacy platform without being embedded into it. The infrastructure players, in turn, use the same API technologies to open up their solutions to fintech innovators/distributors. This is helping Banks to accelerate the adoption of API technology to ramp up customer acquisition, improve transparency and increase customer satisfaction.

There are several reasons why API banking and payments are becoming the wave of the future. The first and most obvious reason is cost reduction and faster launch of products/services. Secondly, APIs can automate customer support and other processes, improving the quality of service provided to customers while lowering costs. In turn, this allows users to have more interaction with the companies they already know and trust, making them more likely to do more business with them.

CARD91 is an API-led issuance Platform-as-a-Service company. It offers unparalleled technology infrastructure to banks, SMEs, corporates & fintech through its Switch and Card Management Solutions for Prepaid Cards, Multi-CurAPIrency Travel Cards and allied systems like Centralised System of Records (C-SOR) for prepaid cards, credit cards and Access Control systems (ACS)

The article is authored by Avendra Singh, Director, Partnerships & Sales, CARD91

The credit card industry has achieved an unprecedented 50% growth in the last 3 years, thanks to the utilisation of co-branded cards. Large traditional banks and fintech businesses are aiming to cultivate stronger brand loyalty, increase brand visibility, and drive revenue growth by deploying more credit cards in the market. In addition to this, credit card issuers want access to a captive audience that the businesses have, in order to cross-sell other banking products.

Earlier, launching a credit card program took banks & businesses several quarters or sometimes even years. But, today, we live in a simpler, faster, super-modular world. Fintechs have changed the financial services landscape beyond recognition. With the rise of open banking, the credit-card stack is available for businesses and banks in an easy-to-integrate, plug-and-play fashion. In this article, we take a closer look at credit card-as-a-service.

What is Credit-card-as-a-Service?

Credit cards in India can be issued solely by Regulated Entities, which in most cases are Scheduled Commercial Banks (SCB) and rarely Regional Rural Banks through their sponsor SCBs or NBFCs with explicit approval from the regulator. Credit-card-as-a-service can be of the following types:

As Technology Service Provider (TSP) to Banks: To bolster the regulated entities’ tech capabilities for card issuance and management, the banks tend to outsource such services to technology service providers specialising in products like credit cards.

Co-Branding Integration: Partner Businesses can issue personalised co-branded cards to their customers by integrating with a Credit-card-as-a-service provider, which in turn does all the requisite plumbing with the issuing entity and the card networks. The role of the co-branding business partner in this transaction will be limited to that of a marketer/distributor.

Inside the Machine.

A credit-card-as-a-service provider takes care of the following modules, depending upon whether the card being issued is a secured or an unsecured one so that you can focus on your topline and bottomline.

Application Processing & Onboarding: The process of enrolling and setting up a new customer account with the credit card issuer.

Card Personalisation and Issuance: Customising and producing physical credit cards with personalised details for approved applicants.

Card Activation: Enabling the functionality of a newly issued credit card for the cardholder to start using it.

Card Replacement / Hot-listing / Renewal: Handling requests for replacing lost, stolen, or damaged credit cards, blocking cards reported as lost or stolen and renewal of expired cards.

Card Management: Overseeing the ongoing administration and maintenance of credit card accounts, including credit limits, usage monitoring, and account updates.

Card Plastic Specifications Compliance: Ensuring that the physical credit cards meet industry standards and compliance requirements.

Authorisation Processing: Verifying and approving transactions made using the credit card by checking available credit and account status.

Open to Buy: The remaining credit limit available for the cardholder to use after accounting for existing charges and pending transactions.

EMI: Enabling cardholders to convert large purchases into equal monthly instalments for easier repayment.

Billing Module: Generating and managing credit card statements with detailed transaction information and payment due dates.

Fee Management: Administering and collecting various fees associated with credit cards usage, such as annual fees or late payment fees.

Rewards Program: Implementing and managing a program that offers cardholders rewards or benefits based on their credit card spending.

Operations: The overall management and coordination of the credit card service, including settlement & recon, customer support, fraud prevention, and compliance.

Notifications & Alerts: Sending timely notifications and alerts to cardholders regarding transaction updates, payment reminders, and security alerts.

Delinquency Module: Managing and addressing instances of late or missed credit card payments by cardholders.

Data Management: Safeguarding and managing the collection, storage, and processing of cardholder data in compliance with data protection regulations.

How do the stakeholders interact?

Given below is a sample stakeholder diagram that illustrates how the different parties interact in the issuance & management of a secured credit card by a corporate / business.

CARD91 is building credit-card rails to help Indian businesses and banks launch their credit card programs at industry-best speeds. Reach out to us –

If you are a Bank, looking for a credit card issuance & management solution.
If you are a Business, planning to launch a co-branded credit card.
If you are a Corporate, planning to launch a corporate credit card program for employees.

Authored by Praveen Varghese, Product Manager, CARD91

Over the past few years, India’s credit card sector has experienced remarkable growth, boasting nearly 98 million active cards and transaction volume reaching 323 Million in December 2023. Projections suggest that this figure could grow to 190 million cards by 2027, driven by a burgeoning affluent class. Despite this impressive growth, a crucial question looms – is the current credit card penetration rate of 3.5% or projected rate of 7% by 2027 enough? Can we extend the benefits of credit cards to the aspirational class and achieve a card penetration rate of 10% of the population ?

The Indian economy, on its upward trajectory, is expected to witness sustained growth, propelled by rising disposable incomes and an expanding middle class. RBI statistics reveal approximately 98 million active cards, with a monthly spend of INR 1,655 billion in December 2023. Key drivers of this growth include the increasing preference for cashless transactions, enticing rewards programs, the allure of a free credit period, and the synchronisation of repayments with salary receipts. Urban areas, in particular, are witnessing a shift towards credit card usage for transactions, thanks to the proliferation of e-commerce and mobile payments.

A recent report by Goldman Sachs titled “The Rise of Affluent India”, expects that 100 million Indians will be earning US$ 10,000 per annum by 2027. This set of people can easily take the number of cards to 200 million and a card penetration rate of 7% by 2027. And this is a great opportunity for Issuers to expand their customer base and increase usage. However, should we stop at 200 million? How about “The Aspiring Indians”? The rapid pace of digitalization has opened up the doors for Issuers to reach a larger customer base and offer innovative products and services. If done correctly, India can issue cards to 10% of the population by 2027.

Growth of Credit Cards from FY2017 to FY2023 with Estimates until FY27 :-

Source: RBI Data

However, the journey towards a higher penetration rate faces challenges. Key challenges include lack of distribution channels for credit card issuers to broaden their customer base and dissemination of information about the benefits of credit cards. A significant hurdle is the prevailing high rate of credit card delinquencies in India, reflecting a lack of awareness among consumers regarding the importance of timely payments and credit score management.

Addressing these challenges requires innovative solutions, such as the issuance of secured credit cards. This product empowers new-to-credit customers to build their credit history and scores by providing security in the form of Fixed Deposits or Gold, culminating in a credit card with a free credit period and generous rewards and offers. Smaller banks, in collaboration with fintech partners, are likely to spearhead this revolution, gaining assets and liabilities without straining their balance sheets.

Some of the strategies that issuers can use for increasing usage of secured credit cards are:

• A wider geographical and demographic reach: Go beyond urban areas by partnering with local banks, non-banking financial companies, and other organisations to offer credit cards to customers in rural areas.
• A sharper focus on Digital Channels: As more consumers in India become digitally savvy, credit card issuers need to focus on digital channels to reach potential customers. This includes using social media, mobile apps, and online advertising to promote secured credit cards and educate consumers about the benefits of using them. The journey of applying for a card, KYC, creation of FD, lien marking, and card issuance has to be seamless.
• Innovative Product offerings: Differentiation by way of tailor made products for different segments, co-branding, innovative rewards, etc.
• Awareness and consumer education: Increase awareness campaigns to help consumers understand the benefits of credit cards and how to use them responsibly. The key benefit to be propagated is that timely repayments can help create and / or to improve their credit scores.

Amidst technological innovations and a burgeoning economy, credit card issuers have a great opportunity in front of them. Through strategic initiatives and consumer-centric approaches, they can fortify profitability, catalyse digitalization, and provide consumers with a secure avenue for transactions—a pivotal step towards realising India’s digital future.

Authored by Amit B. Shah, Chief Business Officer at CARD91

After reading Amit’s blogpost that projects a whopping doubling of the credit card customer base within the next 4 years, I could not help but wonder which is the major segment of India’s population that could qualify as “The Aspirational Indians”. It didn’t take me a lot of effort. With the cues that the economic growth of India is throwing at us – premiumisation trend, luxury / revenge travel, rising number of entrepreneurs, etc. – I could easily conclude that it’s the Gen-Z that’s driving credit card growth.

Okay, now how do you lure this class of potential credit card customers? I remember students of top B-schools getting free credit cards from established issuers. But what about the rest of the young aspirationals? We all know there’s enough competition with some legacy Issuers who’ve got the proverbial “first-mover advantage”, but that also implies they’ve got the legacy systems! How can the next generation of Issuers work using first principles and craft a lean and superior product? We, at CARD91, will surely answer this question in the next few days to come ☺

However, for now, let’s just focus on the specific preferences, lifestyle, and spending habits of this demographic. Here are some features that I felt could be appealing:

Instant Card Issuance:

Millennials hate to wait! If an Issuer imbibes this core principle, a major advantage over legacy Issuers is already gained. Quick and easy application processes with instant card issuance for immediate use are absolutely non-negotiable for Gen Z.

Credit Card on UPI:

Although one may be new to credit card, UPI is omnipresent now! Gen Z is pretty familiar and comfortable using UPI and therefore, this is one of the must-have features to capture the market especially when the legacy issuers are still struggling to make it functional.

Reward Programs for Online Shopping, Food Delivery, Dining, and Entertainment:

Tailored rewards or cashback for online shopping on popular e-commerce platforms, special discounts on food delivery services or dining at partnered restaurants, and exclusive access to movie theatres, streaming services, music subscriptions, and live events are a must have!

Low Forex Markup for International Travel:

Unlike the previous generations, Gen Z is more keen to discover the world from an early age. Since it may still not be earning much, a LOW / ZERO FX mark-up feature on credit cards is surely a hotseller!

Travel Rewards for International or Domestic Trips:

Millennials are explorers in the true sense – domestic or international travel is always on their mind, and on the cards 🙂. Travel-related benefits such as discounts on domestic flights, hotel bookings, or holiday packages within India, exclusive lounge access, and waiver on fuel surcharge are needed in every credit card targeted at this generation.

Local Lifestyle Perks:

Millennials consider work-life balance very important in their overall well-being and are spoilt for choices when it comes to including “life” in their lifestyle! An Issuer must get into partnerships with local brands, gyms, spas, or wellness services to provide discounts or exclusive offers.

Financial Management Tools:

Millennials are eager to learn about building a large corpus. Budgeting features, spending insights, and real-time notifications to help cardholders manage their finances effectively can be a good attraction. An educational initiative on how to get maximum benefit from a credit card by being a transactor can help. Also, a tie-up with any personal finance assistant offering discounted or complimentary services is a plus point.

Customized Offers:

Millennials love personalized experiences! AI-led tailored promotions and discounts based on spending patterns and preferences can be a good draw.

Gamified Rewards:

Accelerated rewards with increasing spends and other milestones can hold this generation’s interest and drive higher card usage.

Language and Regional Support:

Although we are a large, English speaking nation, there’s an even larger chunk of population (Gen Z included) that still prefers Hindi or a local language. To create that “wow” factor, the Issuer can offer customer service and mobile app interfaces that support multiple languages and cater to regional preferences. 

Student-focused Features:

Career development is an important focus area for this generation. The Issuer that can give access to online courses, career-building resources, student discounts, or networking events to support professional growth will surely have an edge over others.

Flexible Credit Limits:

Millennials are either yet to start their professional journey or are in a very early stage. Cards that allow for flexible credit limits based on income and spending habits, giving users more control, are certainly more acceptable.

Green Initiatives:

With the increasing exposure to sustainability initiatives in academic institutions over the last few years, even my daughter teaches a lesson or two to me! Issuers offering cards manufactured in an eco-friendly manner or those with features that contribute to environmental causes will be able to emotionally connect with Gen Z millennials!

Collaborations with Local Influencers:

This generation has a far more extensive online social presence than physical presence. Partnering with popular local influencers or celebrities who are active online for exclusive offers and promotions can drive higher card usage.

Understanding the local culture, preferences, and the unique challenges faced by millennials in India is crucial to design the right credit card product that resonates with this demography. Additionally, keeping up with the rapidly evolving digital landscape and incorporating technology-driven solutions will likely appeal to the tech-savvy nature of millennials.

If you’re an Issuer, no time better than the present to launch a credit card product for this generation. 

Authored by Shailabh Kothari, Director – Sales and Alliances at CARD91

In today’s fast-paced world, credit cards have become an integral part of our financial landscape, offering convenience, security, and flexibility for seamless transactions both online and offline. However, credit cards go beyond mere payments, providing a range of value-added services that enhance the overall user experience. One such service gaining prominence is the Reward Loyalty Program.

Reward Loyalty Programs incentivize cardholders for their spending habits and loyalty to a particular credit card issuer. These programs offer various benefits, including differential reward points, closed-loop EMI programs, meta-data engines, and cardholder-defined actions, significantly enhancing the cardholder’s experience.

Differential Rewards Points:

A key feature of Reward Loyalty Programs is the differential rewards points system, allowing credit card issuers to offer rewards based on cardholders’ spending patterns. This feature goes beyond Merchant Category Codes (MCC) or Transaction Identification (TID), allowing customization based on parameters such as pin code, duration, or specific MCC for particular dates. For instance, cardholders may receive 5x reward points during special occasions like birthdays or wedding anniversaries, adding a personalized touch to the rewards program.

Meta Data Engine:

The Meta Data Engine enhances portfolio management for credit card issuers by efficiently processing vast amounts of data for better decision-making. This tool empowers portfolio and product teams to collaborate effectively, enabling them to identify new opportunities and convert potential customers into cardholders.

Card Holder Defined Actions:

The Card Holder Defined Actions feature empowers cardholders to take various actions through mobile applications, such as increasing credit limits or using reward points as per their preferences. Integration with aggregator EUROP Assistance enables cardholders to redeem rewards across various industries and companies, enhancing flexibility and utility.

In conclusion, Reward Loyalty Programs in credit cards offer a holistic approach to enhancing the cardholder experience, particularly appealing to the millennial demographic. By offering personalized rewards, affordability through EMI options, efficient data management, and user-defined actions, credit card issuers can differentiate themselves and add significant value to their customers’ financial journeys, aligning with the evolving preferences of the millennial generation.

Authored by Deepak Bhatt, Director of Sales at CARD91

In today’s ever-evolving financial landscape, optimizing credit card management processes is imperative for sustained growth and regulatory compliance. That’s why I’m excited to introduce Optimus – an advanced credit card tech stack meticulously developed by CARD91. Optimus, derived from Latin meaning “The Best,” signifies a significant advancement in credit card life-cycle management, empowering financial institutions and raising customer service standards. 

With its customer-centric approach, Optimus enables financial institutions to meet the diverse needs of digitally savvy users. Through secure onboarding and a seamless digital journey, Optimus facilitates faster customer onboarding and improved service quality. By providing personalized rewards and streamlining processes, Optimus enhances customer satisfaction, elevating the overall customer experience and delivering added value to help institutions stand out in the rapidly growing credit card market.

Here are key features that position Optimus as a game-changer in credit card management –

Regulatory Compliance and Modernity:

Optimus is meticulously designed with a modern and modular framework to ensure strict adherence to industry regulations. This architecture provides financial institutions with a robust platform to navigate complex regulatory landscapes confidently. By upholding regulatory standards, Optimus mitigates the risk of penalties and legal issues, fostering a secure operational environment.

Configurable Credit Programs:

Optimus offers unparalleled configurability, allowing institutions to tailor credit programs to diverse customer needs and market dynamics. From setting credit limits to defining spending criteria and incentivizing usage, Optimus provides the flexibility to orchestrate credit programs seamlessly. This adaptability empowers institutions to stay agile and responsive to evolving market demands, driving innovation and maintaining competitiveness.

Customised Rewards:

Optimus enables financial institutions to offer personalized rewards tailored to individual cardholders’ preferences and spending habits. Whether it is cashback on specific categories, discounts at preferred merchants, or exclusive access to events, Optimus empowers institutions to create bespoke rewards programs that resonate with their customers, fostering stronger loyalty and engagement.

Digital-First Approach: 

Optimus offers a digital-first approach, prioritizing a user-centric experience aligned with modern expectations. By leveraging optimized digital channels and streamlined processes, Optimus enhances convenience and accessibility for cardholders, ensuring seamless interactions and efficient credit card management.

In conclusion, Optimus represents a transformative milestone in credit card management technology. With its robust regulatory compliance, configurable features, rewards program, and digital-first approach Optimus empowers financial institutions to navigate intricate regulatory environments while delivering unparalleled customer experiences.

I also extend my heartfelt congratulations to the exceptional CARD91 team for their dedication and innovation in launching Optimus. 

Ready to experience the future of credit card management? 

Reach out, and let us demonstrate the power of Optimus. Book DEMO now.

(Blog Authored By: Ajay Pandey, CEO & Co-Founder CARD91)