Prepaid Cards – Empowering Secure Transactions in India’s Digital Payment Landscape - AGS Indian
                     Prepaid Cards – Empowering Secure  
Transactions in India’s Digital Payment 
 Landscape - AGS Indian
India’s journey towards becoming a USD 5 trillion economy 
requires a  robust and secure payments ecosystem.
The rise of digital payments has been remarkable, over 100x in 
the last  9 years from 127 crore in 2013-14 to 12,735 crore in 
2022-23. However,  digital fraud has also surged, with 6,659 
frauds amounting to Rs 276  crore reported in FY23, 
necessitating more secure payment solutions.
Prepaid cards offer a promising solution to address these 
challenges.  India saw a surge in the number of open-loop 
prepaid cards from  approximately 33.3 crore in FY17 to 
around 127.69 crore in FY22.
Furthermore, the prepaid card market in India is projected to 
witness a  CAGR of 31.5% during 2021-2025, reaching USD 
89.8 billion by 2025,  up from USD 30 billion in 2020.
Prepaid cards’ benefits contribute to their increasing 
popularity:
1. Ubiquity of Usage: Unlike closed-loop and to some extent semi
open-loop, introduction of Open-loop prepaid cards with use-cases like 
 NCMC have broadened their applications, allowing non-mobility  
transactions like shopping and ATM cash withdrawals. Prepaid  
transactions rose from 1.96 billion in FY17 to 6.58 billion in FY22.
2. Ease of Use: Most prepaid cards being issued nowadays are reloadable; 
 can be easily topped up via popular methods like UPI and even cash,  
providing a convenient and cashless alternative.
3. Security: Prepaid cards not directly linked to bank accounts, thus  
protecting users from direct exposure of sensitive information, making 
 them safer than carrying cash.
4. Budgeting Assistance: Prepaid cards facilitate expense tracking and 
 budgeting, ensuring efficient financial management.
Innovative prepaid cards can complement existing payment 
methods,  bolster India’s economic growth, and create a more 
secure and inclusive  payment ecosystem.
While AGS Transact Technologies has powered NCMC for 
Bangalore  Metro, issued by RBL Bank, it’s digital payment 
ecosystem led by Ongo  offers issuance of prepaid cards 
including co-branded cards along with  its partners.
A detailed version of this article first appeared on ET Edge 
Insights.