Pepper Money Introduces India's First Prepaid Card for Tier 2 Cities

Financial technology company, Pepper Money India, has launched a RuPay prepaid card known as Pepper Money Dreams Card, in partnership with the National Payments Corporation of India (NPCI) and Pine Labs. This card is the first prepaid solution specifically designed for Tier 2 cities and other emerging key cities, aiming to address the relatively low card penetration in these areas.

A New Financial Solution for Emerging Markets

The Pepper Money Dreams Card is part of a series of financial solutions set to be released over the coming months. The company plans to onboard roughly 1 million customers within the next 12 to 15 months through this prepaid card. To enhance its appeal, the company is employing a personalized rewards approach, partnering with over 100 local businesses across various sectors such as fashion, dining, travel, consumer electronics, health, and personal care. Customers will also enjoy a flat 1% cashback on all transactions, both online and offline.

Indian Prepaid Card Market Set for Substantial Growth

The Indian prepaid card market, valued at $119 billion in 2022, is projected to experience significant growth. This growth, estimated to be around 36% CAGR over the next five years, is driven by favorable government initiatives.

CEO of Pepper Money India, Abhishek Kothari, expressed his optimism for this venture. He highlighted the growth potential offered by Tier 2 and 3 cities in India, citing the increased digitalization adoption in financial products and evolving spending patterns among aspirational millennials in these cities. Kothari emphasized that the Rupay-powered Pepper Money Dreams Card will connect consumers and local merchants, thus establishing a two-sided ecosystem.

Pine Labs also expressed excitement about the partnership, with Navin Chandani, President - Issuing Business, Pine Labs, remarking on the card’s potential to further boost the adoption of digital payment methods in Tier-2 cities and beyond.