Maybank eyes double-digit growth in prepaid cards
KUALALUMPUR: Malayan banking Bhd (Maybank) is targeting a double-digit growth in the prepaid card segment in the next three to four years on the back of the newly launched Master card Prepaid University Smart Card.
Maybank deputy president and head, community financial services, Lim Hong Tat told the media after the launch that pre-paid cards would grow to be a new segment as it caters to those not eligible to apply for credit cards.
He said the bank has targeted to issue 10,000 cards through the tie- up with Limkokwing University of Creative Technology and Master card in a year.
It also expected an issuance of 20,000 cards from the maybankard Manchester United pre-paid card launched last month, totaling the number of pre-paid cards to be issued to 30,000 in a year.
“This is an area we are growing.
“With our distribution and customer base, we will become a dominant player in the prepaid (card) field, just as we are in the debit card, credit card and charge card,” he added.
Maybank has a circulation of 4.5 million debit cards which translates to more than 50% of market share in the segment.
He noted that the credit card segment had generally moderated due to the economic situation and responsible lending guidelines.
In response to whether the introduction of pre-paid cards would affect the growth of the debit card segment, he said: “Each of the cards have different propositions.
“It (the introduction of pre-paid cards) would enhance the use of electronic payment.”
A pre-paid card owner is not required to have a bank account to carry out transactions compared to debit card.
The introduction of pre-paid card service would be in line with the Government’s effort towards a cashless society as it encouraged people to use cashless transactions.
“We hope that by offering this product, we are able to build the brand affinity (among students),” Lim said, adding that it was a good way to encourage young adults to use electronic payment and to start financial discipline.