Launch of new fuel cards: Digital transactions rise, administrative load reduces

Market players have adopted the strategy of launching new fuel cards to promote digital transactions, reduce administrative tasks, and cater to requirements of customers.

Fuel cards have become a boon for business, customers, and the country’s economy in totality as they offer transparency, reduce administrative load, and cater to demands of customers that require convenience. Launching new cards for businesses has been one of the major strategies adopted by market players. WEX Europe Services, one of the leading fuel card providers in Europe launched prepay fuel card, Esso Card Prepay. The company launched the card in Italy for Italian businesses. This card enables customers to load the cards with funds instead of using credit cards. The company decided to provide special offers for Supreme fuels bought at sites and electronic invoices that enables fleet managers to lessen administrative burden and take control of spending of business’s fuel. The company also launched a fuel station finder tool to find the stations that accept Esso Card Prepay. With this card, administration time required for processing fuel receipts and revising credit card statements will be reduced significantly.

Luca Menicocci, the Head of Sales Italy at WEX Europe Services, outlined that fuel cards have become vital for Italian businesses with inclusion of the Budget Law. So, the company developed a solution that caters to the needs of the customers regardless of the size of their businesses. The company synchronized the fully compliant invoice with the Revenue Agency portal to ensure that fleet managers comply with regulatory standards. This card can be utilized at 2,200 filling sites across the country. Penetration of digital transactions and the introduction of European Directive 2014/55/​​EU, the European market has been experiencing a significant growth. According to the report published by Allied Market Research, the Europe fuel card market is expected to reach $374.59 billion by 2025.

The launch of new cards has been the recent trend and the Asian markets are no exception for them. In India, HDFC Bank and Indian Oil joined hands to launch a fuel card for users from towns and non-metro cities. This card will be available on Visa and RuPay platforms. With application of this card, customers are able to earn reward points known as 'fuel points' at nearly 27,000 outlets of Indian Oil. Moreover, the company states that these points can be availed for 50 liters of fuel per year. The card had been launched across 135 outlets. Vigyan Kumar, the IOCL's Executive Director (Retail Sales), outlined that Indian Oil has been instrumental in promotion of cashless and digital transactions, with nearly 98 percent of the company's total retail outlets accepting credit and debit cards.

Parag Rao, the HDFC Bank's Country Head, Payments Business and Marketing, highlighted that the bank has been striving to take digital payments to small towns and cities. The bank has more than 75% of its branch network in non-metro cities and it aims to empower these customers with the product specifically designed for them. The partnership with Indian Oil is aimed at supporting the digital mission of finding ways to reduce the cash.

Many market players have been finding ways to cater to needs of customers. Along with the launch of new cards, there have been major strategies such as collaboration, agreements, and others adopted by them. The customers will move toward digital transactions in coming years and fuel cards will play a crucial role.

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