Axis Bank working on multi-currency services on travel card

Encouraged by the success of its travel cards, Axis Bank is looking to offer them in multiple currencies and with valued added services.

The private sector bank is also working on other specialised products in the travel cards segment. These include a bundled product that can be used for public transport in Singapore. Another one is a special card for students going abroad, jointly with ISEC (International Student Exchange Card) so that they can avail themselves of discounts at merchant outlets.

The bank, which is the biggest issuer of travel cards in India, has roughly four lakh active cards with a usage volume of over $2 billion.

Axis Bank entered the travel card business in 2003. This segment has seen a consistent average annual growth rate of 40 per cent, said an official.

A travel card is a prepaid card which can be loaded with foreign currency. It can be used like a debit or credit card while travelling overseas.

Currently, cash accounts for more than 80 per cent of the foreign currency transaction volumes. Travel cards and travellers' cheques make up the balance.

“This shows the potential for the travel card business. Even a 10 per cent conversion from currency in favour of travel cards will mean a huge rise in volumes,'' the official said.

Advantages

Although travellers' cheques have been around for longer, travel cards offer certain advantages over them. One is the convenience of being able to use the card at merchant outlets and at ATMs. The second is the ability to reload the card. But the biggest advantage is that the exchange rate is locked in at the time of loading the card. This ensures that the customer does not face nasty surprises in case of a currency fluctuation.

Most people now use travel cards to withdraw money from ATMs.

Axis Bank is trying to highlight the benefits of using the cards at point-of-sales terminals at stores and merchant outlets overseas and also for online ticket or hotel bookings.

“The benefit for customers is that every ATM withdrawal costs $2 or more in fees, while there is no additional charge for POS or online usage,” the official said.

Currently, one travel card allows transactions only in one currency. Axis Bank is working on a multi-currency card which will allow transactions in more than one currency.

For the variants such as silver, gold and platinum the bank is working on benefits depending on the segments like faster clearance at airports, free emergency services and so on, the official said.

priyan@thehindu.co.in