Indian private sector bank YES Bank has partnered with Payworld, a provider of electronic voucher distribution services, to issue co-branded open loop prepaid cards for mass market customers.
The prepaid cards, which are PIN protected, can be used at POS terminals, eCommerce sites for payments and also to withdraw money at ATMs.
Payworld said that it will start distributing the Yes Money Prepaid Cards Network in partnership with Yes Bank via its Business Correspondent Agent.
With this prepaid card, customers who send money to their families can now protect their remaining cash.
The new offering aims to provide INR100,000 personal accident insurance and has been successful during the test phase conducted over past three months.
Additionally, Smart Payments Solution, a wholly owned subsidiary of Payworld, has recently filed an application with the RBI for a payments bank licence.
Payworld COO Praveen Dhabhai said: "We plan to distribute over 5,00,000 cards during the next 12 months, of which 10,000 cards have already been distributed. This prepaid card is safe since it is PIN protected and carries no risk for the customer. Cash is loaded on the card at all our Business Correspondent Agent outlets."