Synopsis
Stashfin hopes to tap into customers who are on the lookout for festive shopping discounts, helping them convert their purchases into easy EMIs using their credit line cards.
Singapore-based neo-banking startup Stashfin has partnered with Visa to launch co-branded prepaid cards with credit lines, amid a growing propensity towards digital payments.
The cards can be used at both physical merchant locations and ATMs as well as in online modes where Visa is accepted, underscoring the US-based card network’s strategy to increase its share in the rapidly digitizing South Asian market through fintech tie-ups.
“We are sitting on a unique opportunity to enable millions of consumers to get closer to their dreams and improve financial inclusion. South Asia is on the cusp of a financial revolution. Our mission is to fuel the aspirations of customers through frictionless banking services with the help of technology,” said founder Tushar Aggarwal.
The prepaid card acts like a personal overdraft facility, allowing customers to take loans with ticket-size between Rs 25,000 and Rs 3 lakh, based on their credit profile.
Stashfin hopes to tap into customers who are on the lookout for festive shopping discounts, helping them convert their purchases into easy EMIs using their credit line cards.
The neo-banking startup will extend Visa’s commercial offers available on the cards to enhance the product offerings to its users, it said.
On the credit line card, customers will have to repay the loan within 12-18 months, unlike credit cards, which will allow them to be financially disciplined, said Aggarwal.
Stashfin currently has a million users, 50% of whom are from major metros.
Aggarwal said the credit line card targets millennials who are either starting their careers or are still in the early stages and prefer not to deal with the bottlenecks of borrowing from a traditional banking institution.
A 2018 report by Infosys forecast the global market for prepaid cards to reach $3.1 trillion by 2022, on the back of unbanked and underbanked customers’ growing financial needs.
“We believe in innovation-led partnerships, and fintech remain core to solving the credit gap in India,” said Arvind Ronta, Head of Products, India and South Asia, Visa.
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https://economictimes.indiatimes.com/tech/startups/stashfin-partners-visa-to-launch-co-branded-cards-with-credit-lines/articleshow/79238342.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst