Indian Overseas Bank (IOB) has released a card targeted at young consumers, hoping to encourage them to shop online.
The IOB Connect Card, produced in association with Visa, will be issued to all customers and can also be used at around half a million merchant outlets, although the bank said it was specifically targeted at those between the ages of 10 and 28.
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The Chennai-based bank, which has over 3,000 branches and 2,000 ATMs in India, is hoping to encourage e-commerce by offering 5% cashback on online payments with the card until the end of the financial year.
Although the Indian population remains underbanked, with around 43.8% of the population unbanked in 2012, government initiatives as well as schemes by banks and card companies are having an impact on reducing cash-based transactions.
In November, big retail chains including Future Group, Shoppers Stop, Spencer’s, Wills Lifestyle, John Players, Woodland and Next reported that credit and debit payments were overtaking cash in the major cities.
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