Overview

Prepaid Overview — Prepaid Cards & Wallets

Prepaid cards are a modern, flexible payment instrument that allow users to hold and spend funds without being tied to a traditional bank account or credit line. They are widely used for consumer wallets, corporate spend programs, gift cards, transit passes, and other finite-balance use cases.

Falcon’s prepaid platform enables the complete lifecycle of prepaid instruments — from onboarding and KYC to loading, spending, controls, and reporting — with dynamic spend controls, real-time rules, and regulatory compliance built in.

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What Are Prepaid Cards?

A prepaid card resembles a debit or credit card in form and usage, but differs in that:

• It holds a finite stored value in a digital wallet
• It is not linked to a checking account or credit line
• Purchases are permitted only up to the available balance

Prepaid cards can typically be used for:

• Online (e-commerce) and in-store (POS) purchases
• Certain cards also support cash withdrawals and fund transfers, depending on regulatory classification

Falcon enhances prepaid programs with dynamic spend controls — allowing partners to define how, when, and where cards can be used, enabling better cash-flow optimisation and fraud mitigation.

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Who Can Issue Prepaid Cards?

Prepaid cards are issued by:

• Banks, or
• Non-Bank Financial Institutions (NBFCs)

as authorised by the Reserve Bank of India (RBI).

These organisations issue Prepaid Payment Instruments (PPIs) following the identification and verification (KYC) process, and PPIs are governed by RBI under the broader regulatory framework for payment instruments.

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Types of Prepaid Cards / Instruments

Prepaid instruments are categorised into two broad models:

Closed PPIs

• Issued for use only with a specific entity’s products or services
• Cannot be used for third-party payments or settlements
• Not considered a regulated payment instrument by RBI

Open PPIs

• Issued by banks or NBFCs under RBI regulation
• Can be used across merchant networks for purchases
• May support e-commerce, POS, cash withdrawals, and fund transfers depending on card type

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Classification of Prepaid Cards (As per RBI Master Directions)

Small PPI

A Small Prepaid Payment Instrument:

• Can be issued after minimal user verification
• Supports POS and ecommerce purchases only
• Cannot be used for fund transfers or cash withdrawals
• Is reloadable and spendable up to a regulatory limit

There are two variants within this category:

• Cash loading Small PPI
• No-cash loading Small PPI

If cash loading is enabled, a full KYC must be completed within 24 months of issuance.

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Full KYC PPI

A Full KYC Prepaid Payment Instrument:

• Requires complete user verification
• Supports POS, ecommerce, fund transfers, and cash withdrawals
• Is reloadable and can be used until expiry or voluntary closure

Like Small PPIs, Full KYC PPIs are General Purpose Reloadable (GPR) — meaning they can be loaded, reloaded, and used continuously.

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Other Special Prepaid Categories

Gift Cards (GC)

• Issued with a fixed stored value at issuance
• Maximum amount loaded is ₹10,000
• Cannot be reloaded, refunded, or closed
• Valid only for POS and ecommerce transactions
• No cash withdrawals or fund transfers permitted

PPIs for Mass Transit Systems (PPI-MTS)

• Issued by transit operators for use within a specific transit ecosystem
• Can be used only at merchants directly associated with the transit network
• Reloadable, but cannot exceed a maximum outstanding balance of ₹3,000
• Cannot be used for cash withdrawals or fund transfer
• Transaction authentication (AFA/2FA) is not mandatory for permitted usage

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Limits & Loading Features for GPR Cards

General Purpose Reloadable cards — both Small PPI and Full KYC PPIs — support loading and reloading of funds. The limits are defined as per RBI mandates based on the card classification.

For Small PPIs, funds can be loaded and spent on purchases only; cash withdrawals and fund transfers are not permitted. The authorised loaded value and maximum balance restrictions are set by regulatory limits and must be enforced by platform logic.

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Note:

Specific numeric limits (e.g., ₹ limits per month) are defined in RBI directions and updated periodically.

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Real-World Examples of Prepaid Programs on Falcon

Falcon delivers a flexible prepaid ecosystem that supports multiple product models, including:

Co-Branded GPR Wallets

Partners can issue branded prepaid cards with:

• Complete customer onboarding + KYC
• Regulated loading and reloading within limits
• Dynamic authorisation and spend controls
• Virtual and Physical card options
• Channel and MCC controls
• UPI support on prepaid wallets
• Reporting and reconciliation tools

Multi-Wallet PPI Programs

Falcon enables multi-pouch wallets for use cases such as:

• Meal cards
• Travel & fuel allowances
• Agent supply or incentive wallets
• Open wallets with MCC rules and channel controls

Partners can configure MCC restrictions, fees, and surcharges to tailor card behaviours to business rules, and issue cards on open networks like RuPay, Visa, or Mastercard where supported.

Digital & Physical Gift Cards

Falcon APIs support the issuance of both:

• Virtual Gift Cards for online purchases
• Physical Gift Cards for POS and ecommerce

These cards are ideal for employee rewards, customer incentives, and promotional purposes.

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Get Started with Prepaid Cards

Falcon’s prepaid platform enables partners to:

• Create single-use or multi-use prepaid cards
• Configure dynamic spend controls and Just-In-Time (JIT) funding
• Tokenize cards for digital wallets
• Instantly issue cards to users
• Monitor card activity in real time
• Access analytics & historical reporting for spend and merchant patterns

These capabilities allow rapid program build-outs with minimal integration effort and control over spend behaviour.