Yes Bank Says ‘Yes’ To Prepaid For Corporates

Indian bank Yes wants to link its business customers to prepaid cards but isn’t doing so without some help. Yes Bank, reports said Thursday (Jan. 21), will be working with Zaggle to issue prepaid cards to corporate clients.

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In an announcement, the FI said that the venture is part of its efforts to get corporates on board with new payments technologies.

“We at Yes Bank are confident that cashless payment solutions [are] the way ahead in transforming [the] financial services industry,” stated the bank’s senior president and country head of digital banking, Ritesh Pai. “With this partnership, Yes Bank expects to reach out to 10 million consumers and more than 10,000 corporate.”

According to reports, the prepaid solution will complement existing prepaid card services offered by Yes, which include reloadable cards and gift cards. The prepaid card for corporate users will operate on the MasterCard platform, it added.

Prepaid cards are traditionally viewed as a way for individual consumers to use card products, even if they don’t have banking services. The products allow underbanked users to access their funds with a card that isn’t linked to a bank account.

But use of the prepaid card among corporate users is on the rise.

One EU-based company, Prepaid Financial Services, recently spoke out about this trend, driven largely by a shift in perception. The firm’s CEO, Noel Moran, explained that prepaid cards are now being viewed as a technologically sophisticated solution and one that can allow enterprises to manage employee spend more adequately.

The corporate prepaid card largely took off thanks to use of the solution by government officials, Moran said, as federal employees needed a way to spend government money without going over the limit and allowing their managers to oversee their spending habits in real time.