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Citibank launches pre-paid $ card

BS Banking Bureau in Mumbai

Citibank has launched the Citibank World Money Card - a pre-paid dollar card - along with Visa International. The card allows the customer can access cash through ATMs and also purchase goods and services at point-of-sale machines.

Says Citibank's cards head Atul Malik: "International travel in the country is a huge industry of around $2.5 billion or Rs 12,500 crore (Rs 125 billion). This market is growing at 25 per cent, specially because of the booming information technology industry."

Adds Citibank's marketing director (cards) T R Ramchandran: "This is the first dollar denominated card in the country and is a powerful substitute for carrying cash or travellers cheques (TCs). The TCs are very cumbersome and only come in fixed denominators."

The cards will have a denominations ranging from $500 to $10,000. The bank will charge $2 from the customer for every reload.

Citibank will distribute the card through authorised money-changers, travel agents and the bank's branches.

Visa International's country manager Santanu Mukherjee said around 50 per cent of the international travellers now use TCs with the remaining using cash.

In the Asia-Pacific the only other country which has a similar card is China where the response has been pretty good.

Citibank is looking at a 20 per cent market share in the first year through this card. The bank is also looking at other applications of prepaid card like a gift card, travellers card for which it will tie up with credit card issuers.

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