Growth soon in debit cards
Plastic cards will soon replace cheques while preparations are also underway to have local credit cards, reducing the use of Visa and Mastercard for local purchases.
“Only 5 per cent of payments are made via cash and cheques in Sri Lanka today. Plastic credit cards will replace cheques for ease of transactions very soon, not only among individuals but also businesses,” says Hatton National Bank Chief Operating Officer Dilshan Rodrigo.
He was speaking at a panel discussion organised by the Sunday Times Business Club at the Kingsbury Hotel in Colombo on Tuesday. The theme of the discussion was ‘Credit Card – Boon or Bane’.
He said there are lots of developments on debit cards and its security. There will be prepaid debit cards which would be connected to the LankaPay network while merchants and eventually customers will benefit from lower charges for domestic transactions.
“Bus tickets are a Rs. 1 billion worth industry in Sri Lanka,” he noted, adding that plastic travel cards are also in the pipeline. Commuters can reload these travel cards, swipe it on the machine fixed inside the bus to make the payment. Debit cards will be introduced for school students so that parents won’t need to give cash to their children and these would be confined for use at the school welfare shop, bookshop and canteen with parents notified if a card is swiped elsewhere other than the designated places.
Mr. Rodrigo also stated that a local card is being developed by Lanka Clear, similar to Visa and Mastercard. The benefit of a local card is that a commission need not be paid in foreign exchange (what Visa and Mastercard get now) and will remain within the country. Visa or Mastercard is advisable for transactions made outside Sri Lanka, he noted.
“(Different types of) plastic cards are expected to be commercially rolled out soon,” added Mr. Rodrigo.