Prepaid cards, a relatively newer concept in India, are similar to credit cards. Only, money is deposited before use and one can only spend an amount equivalent to the amount of money deposited in advance. As the money available for use is deposited in advance, the chances of defaulting and having to pay fees are zero. The requirement of a solid credit score does not arise, nor is your existing credit score affected by your spending habits on a prepaid card. This makes prepaid cards apt for users who find it taxing to maintain a good credit score and are unable to own a credit card. Here is a list of the most beneficial prepaid cards in India for 2023 :

1. Kotak Spendz Prepaid Card - This card is useful for people to retain the bulk of their money while spending. This card has no cap on cash-back and no lower limit. All kinds of spends are eligible for a cash-back. It has no annual fee, which makes it a great alternative to credit cards that may offer similar benefits.

Highlights :

- 1% cash-back on all spends.

- No compulsion to maintain any balance.

- Up to 20% discounts on leading merchants such as Zomato, Swiggy, MakeMyTrip, BigBasket, Myntra and more.

2. State Bank Foreign Travel Card - A prepaid Foreign Currency card that makes your foreign trip trouble-free and convenient. This card is designed exclusively for travelling and is available in nine currencies. It has a first upload fee of INR 100 and a reload fee of INR 50 on every reload.

Highlights :

- Maximum amount that can be uploaded in it is $2,50,000.00, which is higher than the other companies offering this facility.

- No compulsion to maintain any balance.

- It is valid to use anywhere you travel, worldwide, except in India, Nepal and Bhutan.

3. HDFC Millennia Prepaid Card - An embedded chip based prepaid forex card introduced in partnership with MasterCard International. This card gives you the freedom to shop anywhere in the world and provides access to the currency of your destination at competitive market rates. It has an annual fee of INR 499.

Highlights :

- Maximum cash-back of INR 400 per month.

- 1% cashback on wallet reloads, 1% cashback on offline shopping and 2.5% cashback on other online spends.

- Personal accident cover of INR 1 lakh ( as long card has been used within 30 days of the accident).

5. ICICI PayDirect card - This card addresses the concerns of an enterprise for payment of salaries, reimbursement, commissions and incentives to its employees and associates. With this card, the cardholder can withdraw funds from ATMs and make purchases at merchant outlets having Point of Sale (POS) machines. It has a joining fee of INR 250 as well as an annual fee of INR 250.

Highlights :

- The card's features can be customized as per the requirements.

- No minimum balance requirement.

- The card can be used to withdraw cash from any ICICI Bank ATM and to shop at more than five lakh merchant outlets.

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This list demonstrates the range of advantages that prepaid cards offer. Their drawback is that they typically charge a hefty fee. With Xare, you enjoy free access to all of these advantages and more. You can use Xare to access cards whether or not you own them. You can create clubs on XareClub with your immediate family or friends and share each other's cards conveniently and safely. You can use the cards of other members of your XareClub as your own. For instance, if you only have a debit card and wish to enjoy the advantages offered by a credit card. For parents who want to give their teenagers access to their cards, XareClub is a fantastic option. Download Xare today for quick and secure payments.