In its first steps to introduce retail-finance products, India’s Muthoot Vehicle and Asset Finance Ltd. has signed an agreement with Axis Bank Ltd. to launch Muthoot-branded prepaid cards.
When launched later this month, cardholders may use the semi-closed prepaid card only at merchant terminals connected to the Mumbai-based Axis Bank’s point-of-sale debit network, a spokesperson for Kochi-based Muthoot tells PaymentsSource.
Merchants contract specifically with the issuer, and consumers may not use the cards at ATMs.
The prepaid card initially will be available in the state of Kerala at all Muthoot branches, where cardholders also may reload the card accounts with up to 10,000 rupees (US$193 or 143 euros), he adds.
The card will issued in other states later, the spokesperson says. “We have already identified and activated select merchant locations where the card can be used,” he says.
“We are confident that these prepaid cards will find ready acceptance within their customer target groups,” the spokesperson adds.
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