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

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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?

Comments

  1. NananaDecember 14, 2011 at 2:34 AM

    Hi Pranshant,

    Did you know that people can transfer money to their (SBI) PPF accounts by NEFT from any bank account?

    No more standing in line at SBI branches for the same. Also, if one has an SBI S/A, they can view PPF details online (one has to link the custids of both incase different)

    FYI

    ReplyDelete
  2. NitynDecember 17, 2011 at 9:41 AM

    If I am the company selling infrastructure bonds then I would not entertain payments using debit card or credit card coz I will have to pay interchange.
    This means for a 10 K infra bond sold I loose 2% which is 200 rupees. Plus there would be cost of chargeback risk.

    Until I get a very low interchange offered by debit card or credit card company I would not be very keen

    ReplyDelete

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