Synopsis:
Prepaid travel cards can be a huge untapped opportunity owing to the fact that travel and tourism is a growing industry. However, like with every new product launched, it will take time to get popular amongst travelers.
On the brighter side, the cards will be a blessing in disguise to travelers since it will minimize risks of carrying cash or cards in a foreign land. Read further to find out more…
Sep 10 2008, Mint
Full article:
Bangalore: Mangalore-based Corporation Bank has launched a prepaid travel card in collaboration with JPMorgan Chase & Co and Visa. Corporation Bank is the second public sector bank in the country after the State Bank of India (SBI) to launch such a card.
SBI and Visa International had launched a prepaid travel card in 2004. The card from Corporation Bank is currently available for US dollars and would enable a customer to make purchases, withdraw cash in local currency (currently US dollars) at ATMs while traveling abroad.
“The card helps travelers avoid the risk of carrying foreign currency, credit or debit cards and traveler cheques,” said B.R. Bhat, general manager, Corporation Bank.
Last year, nearly 8 million Indians traveled abroad. The bank expects to sell 25,000 such cards over the next one year. It will soon launch such cards for currencies in euros and pounds and later for yuan also.
Corporation Bank did not divulge the revenue sharing model amongst the three partners. Bhat says that the advantage of using the travel cards is that there is no transaction cost involved, unlike credit cards.
The minimum loading amount for these cards is $200 and maximum $9,000 at any single instance.
Filed under: Brand_Others, Product_Credit cards
