‘Expect tap and pay to hit 80-85% usage very soon’: Thomas Cook’s Deepesh Varma

In a world where travellers are steadily moving away from cash in wallets and towards digital payments, security and trust have become as important as convenience. At the forefront is Thomas Cook (India) Limited, which has implemented tokenisation in its prepaid forex cards.

In an exclusive interview with Fortune India, Deepesh Varma, executive vice-president–foreign exchange at Thomas Cook (India) Limited, explains how tokenisation is transforming payment security, enhancing customer confidence, and redefining how both corporates and leisure travellers handle their foreign exchange requirements.

 Edited excerpts:

How are you applying tokenisation in cross-border transactions? What is the impact on customer confidence?

Tokenisation is an important element in policies, which we also believe are safe, secure, and seamless. We have already implemented tokenisation on all our cards. We are the first forex provider in GPay, and we have also implemented tokenisation there. It's secure, safe, and it's an extra safeguard that is there; the cross-border guy does not understand and will not get the card number. He will get the token along with it. So, a lot of customers are extremely happy with the kind of solution that we have provided to them. 

From a cross-border perspective, a lot of people are moving from cash to cards. If you look back five or six years, retail and leisure customers used to pay around 40% on card and 60% in cash. That has now reversed. Many corporate customers prefer long stays; earlier, it was a 50:50 split, but now it has gone up to 80:20. So, if a corporate is spending $1,000, $800 would be paid by card and $200 in cash. In leisure, the split is now 60:40. This shift gives us confidence that many people are now using digital methods.

Tokenisation is expected to become standard in the coming years. Another point we have observed is that tap and pay is indeed a contactless payment. Most POS terminals now support tap and pay NFC. What you realise here is, for example, data showing that in 2023, our tap and pay usage was around 52%. In 2024, it increased to approximately 56-58%, and this year, we have already risen to around 65-68%. I believe this will reach 80-85% in the next few years.

Contactless payments have experienced rapid growth in recent years. In your view, how is this trend influencing the way Indian travellers manage everyday spending abroad—in areas such as retail, dining, and transport?

Speed and convenience are important. You're standing outside a cafe, and if you do tap and pay, it's much faster to do that. It is secure because there's no swiping or inserting your card, and you know it’s available everywhere. You will see many transactions happening around, with people using tap and pay, which is becoming the norm going forward.

How secure is the card, especially in case of theft? How does the security feature work?

One of the things we have done is that if it is a Google Pay card, then you don't need a physical card. So, in that sense, you know it is secure. Another aspect we have implemented is that on our bots, there is an option to block your cards through your WhatsApp number. Alternatively, you can contact us directly or via WhatsApp to block the card or the number. But yes, in that sense, we have established some security measures in case someone loses the card.

Prepaid forex cards remain a preferred option for many travellers. What new features or enhancements, such as multi-currency wallets, mobile integration, or personalisation, are being introduced to increase their convenience?

We have now expanded our support to include more than 12 currencies on our borderless Travel Card. Additionally, because of our experience, we have curated three types of cards. One is for students, called Study Buddy. Another is for leisure travellers, which we call the Borderless Travel Card. The last one is for our corporate clients, known as the Enterprise Card.

For each of these cards, we have tailored services to meet the specific needs of that target group. For example, with students, we realised many come from distant places, so we offer lounge facilities and five to seven days of free SIM cards with unlimited data, since they are going to a new city and need to stay connected.

We have also added benefits like Uber services for travelling from the airport to their accommodation and vice versa. We have designed these benefits to ensure each target audience gains value. Additionally, we introduced WhatsApp to streamline customer service. About 50% of calls to our call centre have shifted to WhatsApp, as many common issues, such as checking balances, resetting passwords, or retrieving PINS, can now be resolved there. 

We also created a direct WhatsApp call feature for customers outside the shop to avoid navigating through toll-free numbers and IVR systems. Launched around two to two and a half months ago, this service already accounts for 25% of calls previously made to our toll-free number, offering greater ease and convenience for our customers.

How does your prepaid Forex card work if someone travels across many countries? 

In addition to supporting 12 currencies, it allows you to spend in multiple currencies smoothly. For example, if someone is travelling to the U.S. and then to Europe, the card automatically switches to the relevant currency or deducts from the appropriate balance, making transactions straightforward and avoiding unnecessary conversion charges.

For instance, let's say you want to take $1,000 and you're visiting the U.S.; you will give me, say, whatever the equivalent amount is in rupees. Typically, what happens here is that whenever you go, let's say you have dollars in your prepaid card. When you travel to a new country and swipe a machine or use tap and pay, most POS machines will ask you which currency you want to use–is it your home country's currency, or should it be dollars or euros? We advise all customers to use the currency available on their card, and the system will convert it accordingly. It will deduct in euros, performing a bit of cross conversion from dollars to euros if you are in Europe.

We have an app called FxNow where you can top up your card. For example, if you want to add a few more pounds to your card, you can top it up. It depends on your original payment method. If you used a card for the transaction, you'll need to enter the details again. If you used Google Pay, you can top it up through Google Pay.

Outbound travel is growing not just from metros but also from Tier II and III cities. How is Thomas Cook adapting its forex offerings to meet the expectations of these newer segments of travellers who may be less familiar with digital-first options?

There is a lot of focus on Tier II, III cities. We have realised it is important to have better communication about some of the features we have built into our product, such as digitisation.

We are utilising a lot of vernacular influencers to help us communicate that. Additionally, we are using a range of flyers, communication materials, and other resources in Tier II and III cities to ensure that people have a better understanding of how the digital ecosystem we have created can benefit them. As I said, being safe and secure is something we want to communicate to everyone. And we are seeing that many people are using our cards.

How do you think you compare to your peers? What benefits or advantages do you have? And what about the others?

There are many competitors. Our biggest ones are the banks because of their extensive distribution networks. However, as I mentioned, we have built an ecosystem that leverages digital penetration, and we have approximately 140 branches. This means we have covered most of the cities.

The other advantage here is that our branches are solely dedicated to forex services. Unlike banks, which offer a range of other services, our branches focus exclusively on travel and forex. This allows us to provide a level of service to customers, whether digital or physical, that far exceeds what other competitors can offer. We are focusing on that, whether it is the services we provide, agnostic to the channel, whether it is services provided in the branch or the digital services we offer, we are ensuring that we are top-class in that sense. 

Lastly, the rates fluctuate daily, but we remain highly competitive.