Saturday, December 10, 2011

Would you be interested to invest in Indian Infrastructure Bonds through your Credit Card?




I was thinking aloud, how to kill multiple birds with a single stone.

What are the multiple birds?
01) Increase the average spending on Credit Cards.
02) Increase the reward points
03) Introduce a new payment method for the Infrastructure Bonds.
04) Increase the catchment area for Infrastructure Bonds.
05) Increase the average spending on Debit Cards.
06) Increase the catchment area for Internet Banking.

And, What is the single stone?
A) ePayments.


Ok, so you do not believe it? Well read on.

At present the only option to apply to Infrastructure Bonds, is via the old fashioned way i.e Paper Instruments via Cheque Draft. Few Brokerage houses allow the Investor to apply through their website, with an integrated  Payment Gateway. However, payment via Credit Card/Debit Card is still in their basket of options.

This is where my idea comes into play.

A basic road-map is as under :
01) The Broker integrates the Payment Gateway to accept Credit/Debit Cards too.
02) The investor has the option of choosing to pay via Credit / Debit Card at the time of ‘make payment’, option.

Nothing more, Nothing less.

Benefits:
A) The credit card issuing company sees an increase in their turnover.
B) The investor gets a 45 days cushion to pay the credit bills. Of course, this is dependant on the credit card billing cycle.
C) The credit card holder gains reward points on his/her credit card.
D) The overall subscription to the Infrastructure Bonds zooms up.

Hm, money back offer on Infrastructure Bonds will be a non-viable proposition for the Credit Card companies.

So, who will be the first to offer this facility in India?