With reference to the growth of e-com in India ,now digital money is growing at the cost of liquid cash.This digital money could be a credit card (if it is credit card ,than all chances of it being visa) or a mobile cash.But even mobile transcactions are taking place thru credit cards.In India we do not see real mobile cash like the one prevalent in kenya.In Kenya there is enough transaction thru mobile as opposed to India where RBI is a tough regulator.

Till now one can book tickets and transact through a mobile using a credit card but come January 2011 ,everybody can also use their debit cards for mobile transaction.

Another thing in market is prepaid cards .

Advantages for companies building a business model around a prepaid card is that it helps them save on commissions which otherwise would go to VISA .

But the challenges for prepaid card would be

1) to build and scale IT infra and bring the product in line with electronic payment standards.I doubt whether prepaid cards prevalent in India will be easily used from semi-closed (or semi-open) can be reloaded and used as open-loop (when ever RBI allows in future).It seems difficult in given scenario but if it happens, it will be another chapter in the business model of the companies apart from being just an e-com player.

2) the cost of acquisition of customer is more as marketing spend is more. 

A lot is at stake travel, books and gadgets .It is how you build your business and your ecosystem.

Summing up , shall one build a business model on visa or prepaid cards.(Though US experience may be a guidance but India may be different.

Everybody’s opinion please.

vikasshah

Worked with Air India for eight years.Gained experience in air travel and cargo business.