Thomas Cook India Limited has launched a cross-border rewards programme for its forex card customers, becoming one of the first players in the segment to offer spending-linked rewards across international merchants and payment ecosystems.

The programme is available to users of all Thomas Cook Visa and Mastercard Forex Cards and is designed to encourage higher overseas transaction activity. Under the scheme, eligible customers can receive 10% rewards-back on spending at selected international brands and payment platforms. Participating merchants include globally recognised names such as Starbucks, McDonald's, KFC, Burger King, 7-Eleven, Grab and Careem.

According to the programme structure, customers can earn rewards equivalent to up to USD 10 per day per merchant, subject to eligibility conditions. The earned benefits will be distributed in the form of Amazon vouchers, creating an additional incentive for customers to continue using forex cards for day-to-day spending while travelling abroad.

The launch comes at a time when outbound travel from India continues to expand. Rising international tourism, student mobility and business travel have increased demand for foreign exchange products, including prepaid forex cards. While digital payment options and international credit cards have gained popularity, forex cards continue to appeal to travellers seeking exchange rate certainty and controlled spending.

What is changing is the value proposition attached to forex cards. Traditionally, these products competed primarily on exchange rates, convenience and security. By introducing a rewards layer, Thomas Cook India is attempting to position forex cards as lifestyle-oriented payment instruments rather than merely travel utilities. This could help improve transaction frequency and customer retention in a highly competitive foreign exchange services market.

From a business perspective, higher card usage typically translates into greater transaction income, stronger customer engagement and increased cross-selling opportunities. Customers who frequently use forex cards are more likely to utilise other travel-related services such as holiday packages, travel insurance and foreign exchange solutions. The rewards programme therefore serves not only as a customer acquisition tool but also as a broader ecosystem engagement strategy.

The initiative also reflects a wider trend across the payments industry, where reward programmes are increasingly being used to influence consumer behaviour. Financial service providers are focusing on loyalty-driven models to capture a larger share of customer spending, especially in categories such as travel, dining and international transactions where spending intensity tends to be higher.

Why this matters for investors is that the launch indicates Thomas Cook India's continued efforts to strengthen its non-travel revenue streams and improve monetisation of its foreign exchange business. As outbound travel recovers and expands, forex-related products could become a more meaningful contributor to customer acquisition and transaction-led revenue growth.

Market Impact on India

The development highlights the growing sophistication of India's travel-financial services ecosystem. As international travel demand increases, competition among forex card issuers and travel service providers is likely to intensify through loyalty programmes and value-added offerings.

Sector Impact

The move is positive for the travel services and foreign exchange sectors. It may encourage competitors to introduce similar reward-based propositions, leading to greater innovation in travel payment products. Payment networks and partner merchants could also benefit from increased transaction activity.

Bull vs Bear Scenario

The bullish case is that the rewards programme drives higher forex card adoption, improves transaction volumes and enhances customer loyalty, creating recurring revenue opportunities.

The bearish scenario is that customer participation remains limited if competing payment methods such as international credit cards and digital wallets offer stronger rewards or greater convenience.

Risk Section

Key risks include higher programme costs if customer participation exceeds expectations, competitive responses from rival forex providers, and changing traveller payment preferences. Regulatory changes related to foreign exchange transactions or cross-border payments could also affect programme economics.

Overall, the initiative represents a strategic effort by Thomas Cook India to deepen engagement with outbound travellers and differentiate its forex card offering in an increasingly competitive market.