Why did Amex first introduce a charge card and then later decide to enter the credit card business?

We have expanded our product line as the market place has grown in order to cater to every requirement in the market. In fact, Amex also offers a consumer card and a corporate card. With a corporate card, companies are able to identify the expenditure their employees incur on travel and entertainment. This way, the employee gets the benefit of a credit card and the company procures information onexpenses.

In fact, our charge card, which was our first product, continues to do very well. It caters to that segment which is financially very sound and does not want to take credit.

Amex has plans to launch a global rupee card. By when do you plan to launch it and who will be your target consumer?

We were the first to offer a card for individual outstandings overseas. This was way back in 1986. Amex pioneered this market and we worked closely with the RBI and with the business community to work out a value proposition. It is a very successful product.

Besides having presence in 120 countries, we are also the largest travel agency -- with over 1,700 offices available to our card users when they travel for access to a number of services like card replacement and cash access.

With the new RBI guidelines that enable card issuers to offer the same product built in rupees instead of dollars, we will soon launch a globally valid Re-built card. We will shortly make a specific announcement in thatregard.

Our target consumer will be the frequent global traveller. For example, we have a very powerful membership rewards programme which gives you points as you spend on the card. For this programme, we have tied up with several airlines. So we'd have similar free air-miles programmes for our global Re card holder across a number of airlines.

What are the hindrances to the growth of plastic money in India?

This is a very exciting industry. It is less than a decade old and is growing very rapidly. There are no barriers to entry. The growth rate on spend is around 30 to 35 per cent year on year. The growth of plastics is 20 to 25 per cent per annum.

Faster telecommunications development would have helped the industry. Long distance calls are still quite expensive. Had credit bureaux evolved, the industry would have developed much faster. We lag behind in banking services as well. To the extent that these are accelerated, the growth could be faster.

What are your predictions for theindustry?

At the industry level, we are looking at a size of 8-10 million consumers in the next three to five years with a spend of around US $9-12 million. This will make the country one of the most attractive plastic industries in the world. At present, the card population is around 3 million. The card business is expected to touch the Rs 20,000 crore mark by the year 2000. Amex has been growing at over 50 per cent both in terms of spend and the total number of cards issued.

Why hasn't Amex launched a co-branded or an affinity card so far?

We are exploring such possibilities. I can only say, watch this space. We would be announcing exciting partnerships very soon. These would offer the best value proposition to our cardholders.

What peculiarities do you attribute to the Indian consumer?

There are three words to describe the Indian consumer -- knowledgeable, traditional and innovative. The Indian consumers pay heed to what they are getting out of a service or a product. They aretraditional and innovative at the same time. And that makes launching new services that much more exciting.

Initially, there were some traditional concerns about spending on a credit card. These are normal. As the industry evolves, those concerns tend to get deviated. Five or six years back, spending used to be primarily in travel and entertainment. But now, consumers have started looking at credit card products as something that enables them in supporting their entire lifestyle. They now use cards not just for travel or entertainment but also for buying petrol.

Do you plan to introduce a debit card soon?

We believe in putting our finger on the pulse of our consumer. So if we feel the need to offer a new service or a product, we will be there.