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 digital era, the security of financial transactions is of utmost importance. With the rising prevalence of cyber threats and data breaches, it’s crucial for financial institutions to adopt robust security measures to protect sensitive card information. One such innovative solution gaining traction is issuer-led tokenization. Let’s explore what issuer-led tokenization is, how it works, and why it’s important, all explained in straightforward terms.

Understanding Issuer-Led Tokenization:

Issuer-led tokenization is a sophisticated security measure designed to safeguard sensitive card data during transactions. Unlike traditional methods of storing card details, tokenization replaces this information with unique identifiers, known as tokens. These tokens retain the essential characteristics of the original data but are meaningless to unauthorized parties. In the context of card on file (CoF) transactions, issuer-led tokenization ensures that card data is securely stored and transmitted, minimizing the risk of data breaches and fraudulent activities.

Process of Issuer-Led Tokenization:

1.  Token Generation: Card issuers generate unique tokens for each cardholder, securely storing them on devices and issuer systems.
2. Customer Consent: Before tokenizing card data, card issuers obtain explicit consent from the cardholder, ensuring transparency and accountability in the tokenization process.
   
3. Tokenized Transactions: During payments, meaningless tokens are transmitted instead of sensitive card details, ensuring security and confidentiality.
   
4. Secure Storage: Encrypted tokens and card details are securely stored, preventing unauthorized access and data breaches.
   
5. Compliance with Regulatory Guidelines: Issuer-led tokenization adheres to regulatory guidelines, including restrictions on storing actual card data and requirements for explicit customer consent.

Significance of Issuer-Led Tokenization:

Issuer-led tokenization offers several benefits, including:

1. Enhanced Security: By replacing sensitive card data with tokens, issuer-led tokenization strengthens the security of card transactions, reducing the risk of data breaches and fraudulent activities.
2. Transparency and Accountability: Explicit customer consent and adherence to data storage guidelines promote transparency and accountability in the tokenization process, fostering trust between cardholders and issuers.
3. Regulatory Compliance: Compliance with regulatory guidelines ensures that card issuers maintain the integrity and security of card data, mitigating potential risks and liabilities.
   

Issuer-led Vs Acquirer-led tokenization:

Tokenization, whether led by the issuer or the acquirer, serves as a crucial security measure in today’s digital payment landscape. When led by the issuer, tokenization involves the replacement of sensitive card details with unique tokens, enhancing security and protecting cardholder information during transactions. On the other hand, when led by the acquirer, tokenization offers merchants flexibility by allowing them to manage tokens and streamline payment processes. While issuer-led tokenization prioritizes security and cardholder control, acquirer-led tokenization focuses on merchant convenience and transaction efficiency. Both approaches contribute to a safer and more secure digital payment ecosystem, ensuring trust and reliability for all parties involved.

In Conclusion:

Issuer-led tokenization represents a significant advancement in the security and transparency of digital payments. By incorporating explicit customer consent and adhering to regulatory guidelines, card issuers can enhance the security of card transactions while maintaining transparency and accountability. As digital payment ecosystems continue to evolve, issuer-led tokenization emerges as a key strategy to safeguard sensitive card information and uphold the integrity of financial transactions.

Authored by Astha Bishnoi, Manager – Partnership & Sales at CARD91

In India, where millions rely on public transportation for their daily commute, the introduction of the Pure National Common Mobility Card (NCMC) is a game-changer. The Pure NCMC are PPIs for usage at Mass Transit Systems only. It aims to facilitate seamless travel across metros, trains, buses, auto-rickshaws, and cabs, while also serving as a convenient method for toll and parking payments. This unified card, transcending regional limitations, embodies the concept of “One Nation, One Card,” significantly simplifying the travel process and enhancing efficiency for countless commuters nationwide.

Streamlining Travel Payments with Stand-alone NCMC Cards:

1. Seamless Integration: NCMC Cards seamlessly integrate with metro, buses, rail, and waterways, offering commuters a hassle-free payment experience.
2. Versatile Usage: Extend NCMC Cards to toll payments and parking fees, streamlining the entire travel payment process without the need for multiple cards or cash.
3. KYC Exemption: NCMC Cards can be issued without the need for Know Your Customer (KYC) verification, accelerating the card issuance process.
4. Reloadable and Perpetual Validity: NCMC Cards can be reloaded multiple times, with maximum card balance of INR 3000 at any point of time.. This ensures that commuters always have sufficient balance, with perpetual validity for uninterrupted access to funds.
5. Transaction Restrictions: NCMC Cards restrict cash withdrawals, refunds, or funds transfers, ensuring they are solely used for travel-related purposes (specified Merchant Category Codes), and preventing misuse.
6. Interoperability: NCMC cards are interoperable across different transit systems, enhancing convenience for users.

Effortless Payment Process with Pure NCMC Cards

NCMC cards run on the prepaid card rails of NPCI. They can be loaded electronically or by paying cash at designated counters. Payment with Pure NCMC cards is straightforward. Commuters tap or swipe the card at designated readers upon entry and exit for metros, buses, auto-rickshaws, or cabs. Fare deductions are automatic, eliminating the need for cash or multiple tickets. Similarly, for toll and parking payments, users tap or swipe their Pure NCMC card at respective terminals, streamlining transactions.

Transforming Travel with Pure NCMC Cards

Pure NCMC Cards are transforming travel in India, offering a seamless, efficient, and secure payment solution for commuters. As India moves towards a digital-first economy, the widespread adoption of NCMC Cards promises to usher in a new era of convenience and accessibility in travel payments, benefiting millions of commuters across the country.

At CARD91, we offer a flexible, robust, and scalable card issuance platform, collaborating with Banks, NBFCs, Fintechs, and enterprises to launch new-age card programs quickly. Our platform is ready to provide Pure NCMC cards, NCMC wallets in GPR cards, and NCMC through Credit cards, ensuring innovation and efficiency in digital payments.

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Authored by Astha Bishnoi, Manager – Partnership & Sales at CARD91

In today’s rapidly evolving financial landscape, where customer expectations are continually shifting, developing credit card stacks requires a strategic approach that places users at the center. Design thinking emerges as a powerful methodology for crafting credit card solutions that not only meet but exceed user expectations. Let’s explore how design thinking principles can be applied to create credit card stacks that resonate with modern consumers, leveraging the elements provided below:

1. Empowering Credit Card Issuance: A Unified Approach with One-Stop TSP Full Stack

A cohesive credit card issuance ecosystem is essential for seamless operations. By adopting a One-Stop Technology Service Provider (TSP) approach, integrating components like switch/processor, CCMS, UPI, ACS for 3DS, NCMC, Bank portal, co-brand portal, and a cardholder Mobile App, financial institutions can streamline processes and enhance user experiences. This consolidation enhances efficiency and provides a unified experience for both customers and financial institutions.

2. Modular Flexibility: Tailoring Solutions to Specific Needs

Every bank has unique requirements when it comes to credit card offerings. Modular flexibility allows banks to cherry-pick modules according to their needs, whether it’s a Rewards Engine, Instalment Plan/EMI module, NPA Management, or the entire stack. This approach ensures that the credit card solution aligns perfectly with the bank’s objectives and target market.

3. Highly Configurable for Diverse Credit Card Programs

Credit card programs cater to different customer segments and needs. They also work with different cobrand partners to power different use cases. A highly configurable credit card stack enables banks to orchestrate diverse programs seamlessly. Whether it’s secured/unsecured, retail/business/corporate, or charge/credit cards, the stack can adapt to different program requirements. This configurability empowers financial institutions to offer tailored solutions that resonate with their target audience.

4. Delivering a Fintech-Like User Experience

In today’s digital era, user experience is paramount. A customer-centric approach to mobile app design and user journey is essential for success. From DIY features to 100% digital onboarding, the mobile app must be intuitive, seamless, and user-friendly. By prioritizing user experience, banks can enhance engagement, loyalty, and satisfaction among their customers, setting themselves apart in a crowded market.

5. Rapid Implementation and Seamless Integration

Time is of the essence in credit card stack deployment. Banks need solutions that offer faster implementation, customization, and integration with minimal manual intervention. A well-designed stack should seamlessly integrate with existing systems like CBS, CRM, IVR, FRM, Collections System, Mobile Banking App, and Net Banking portal. This integration ensures operational efficiency and a cohesive user experience across all channels.

6. Rule-Based Operations: Ensuring Compliance and Personalisation

Compliance and personalization are two cornerstones of credit card operations. Rule-based systems within the credit card stack facilitate validations for regulatory compliance, including co-branding arrangements. Moreover, these systems allow for personalized actions at both aggregate and single-account levels, along with event-based notifications for consent and alerts, ensuring transparency and proactive communication with users.

7. Leveraging ML/AI for Real-Time Actions

Integrating machine learning and artificial intelligence enhances the capabilities of credit card stacks. Real-time actions such as fraud risk management and personalization of rewards/offers become more effective and efficient with ML/AI algorithms. By leveraging data analytics, banks can promptly detect fraudulent activities while delivering targeted offers that resonate with individual users, thereby increasing engagement and satisfaction.

8. Future Compatibility and Innovation

Anticipating future innovations and regulatory changes is crucial in the ever-evolving landscape of finance. A well-designed credit card stack is built from first principles, with scalability and adaptability to accommodate future advancements. For example, customization to support emerging technologies like Credit Line Management on UPI ensures that the stack remains future-proof, enabling banks to stay ahead of the curve while minimising costs.

In conclusion, design thinking offers a holistic approach to credit card stack development, emphasizing user-centricity, innovation, and efficiency. By embracing modular flexibility, configurability, and advanced technologies, financial institutions can create credit card solutions that not only meet the demands of today’s consumers but also adapt seamlessly to upcoming demand.

Authored by Astha Bishnoi, Manager – Partnership & Sales at CARD91

As India advances in its digital transformation journey, the payments landscape is rapidly evolving. Over the past decade, driven by smartphones and government initiatives like Digital India, the financial ecosystem has seen significant shifts. One of the most notable changes is the increasing adoption of contactless payments, especially in credit card transactions. Unified Payments Interface (UPI), mobile wallets, and contactless payments are at the forefront of this revolution.

Contactless payment methods such as tapping cards at POS terminals (up to ₹5000), National Common Mobility Cards (NCMC) for transit, and mobile wallets like Google Pay and Apple Pay have made transactions faster and more convenient. Globally, this trend is gaining traction across sectors like retail and public transport, further enhancing the payment experience.

The Benefits of Contactless Payments

1. Speed and Convenience: Faster transaction times improve the shopping experience, especially in busy cities.
2. Enhanced Security: Each transaction uses encrypted, unique codes to reduce fraud risk.
3. Hygiene and Safety: Less physical contact promotes hygiene, particularly important post-pandemic.
4. Mobile Wallet Integration: Contactless cards easily integrate with mobile wallets, adding flexibility to payments.

Adoption in India

In cities like Mumbai, Delhi, and Bengaluru, contactless payments are gaining momentum, with retailers and public transportation adopting NFC-enabled terminals. While rural uptake is slower, government-led digital literacy and financial inclusion initiatives are helping drive adoption in underserved areas.

Safety and Security Perceptions

The Reserve Bank of India (RBI) has implemented guidelines to enhance contactless payment security, such as setting transaction limits and mandating two-factor authentication for higher amounts. Financial institutions and payment providers are actively educating consumers on encryption and tokenization to ensure their financial data is secure. Additionally, advancements like biometric authentication and dynamic CVV codes further bolster the security of these transactions.

The Future Outlook

1. Widespread Adoption: Contactless payments will continue to grow in popularity across both urban and rural areas.
2. Security Innovation: New technologies and stricter regulations will strengthen the safety of these transactions.
3. Integration with Emerging Tech: Contactless payments will merge with technologies like blockchain and IoT, enhancing their functionality.
4. Sustainability: The industry is adopting eco-friendly practices, from digital receipts to green card materials.
5. Credit Line on UPI: An emerging trend is the integration of credit lines with UPI, allowing users to make UPI transactions using a pre-approved credit line without needing a physical card. CARD91’s Credit Line Management System enables banks to manage these credit lines effectively, leading the next wave in digital banking.

Conclusion

Contactless payments are set to shape the future of credit card transactions in India. Their advantages—speed, convenience, and security—are well-suited to the needs of modern consumers. As the digital payments ecosystem evolves, embracing contactless methods will contribute to a safer and more efficient financial landscape, making the future of credit card transactions both seamless and secure.