Is this the END of Credit Cards?

[CC-Muncher]

In recent years, there has been a growing trend towards alternative payment methods that have led some to question the future of credit cards. Many people, especially younger generations, are increasingly using digital payment methods that offer greater convenience and flexibility compared to traditional credit cards.

There are several reasons why people are moving away from credit cards. Firstly, credit cards often come with high-interest rates and fees that can quickly spiral out of control, leading to crippling debt. Secondly, some consumers are hesitant to use credit cards due to concerns about fraud and identity theft. Finally, alternative payment methods, such as mobile payments, cryptocurrencies, and buy now, pay later options, offer greater convenience and flexibility than credit cards.

While credit cards still offer benefits such as rewards programs and fraud protection, it remains to be seen whether they will continue to be popular in the future. As more people become aware of the downsides of credit cards and the benefits of alternative payment methods become more widespread, credit cards may become less popular.

What do you think about the future of credit cards? Do you guys believe they will continue to be an essential part of our financial lives, or do you think they will become obsolete in the face of new digital payment methods? Share your thoughts and opinions in the comments below.

 

[Patil007]

What I observed is new generation from school-college onwards exposed to mobile and to these payments apps.

Now they don't have bank account but everyone has Aadhaar number and they are using these instant loan, digital money, pay later options and not aware about it's downsides.

So once they grow, maybe they will find these apps only convenient instead of cards.

Also, people are watching only youtube videos, reels now a days and there are multiple channels who promotes these apps with hacks and tricks.

 

[CC-Muncher]

In addition to traditional physical credit cards, many banks, such as HDFC, are now offering digital UPI credit cards that are integrated with RUPAY and UPI. This integration allows users to access their credit card information and make transactions through their mobile phones, eliminating the need to carry a physical card. For banks, this means a reduction in costs associated with producing and distributing physical cards. For users, it offers greater convenience and flexibility, as all necessary credit card information is accessible through their mobile devices. Overall, this integration is a win-win situation for both banks and customers.

 

[Copycat]

In recent years, there has been a growing trend towards alternative payment methods that have led some to question the future of credit cards. Many people, especially younger generations, are increasingly using digital payment methods that offer greater convenience and flexibility compared to traditional credit cards.

There are several reasons why people are moving away from credit cards. Firstly, credit cards often come with high-interest rates and fees that can quickly spiral out of control, leading to crippling debt. Secondly, some consumers are hesitant to use credit cards due to concerns about fraud and identity theft. Finally, alternative payment methods, such as mobile payments, cryptocurrencies, and buy now, pay later options, offer greater convenience and flexibility than credit cards.

While credit cards still offer benefits such as rewards programs and fraud protection, it remains to be seen whether they will continue to be popular in the future. As more people become aware of the downsides of credit cards and the benefits of alternative payment methods become more widespread, credit cards may become less popular.

What do you think about the future of credit cards? Do you guys believe they will continue to be an essential part of our financial lives, or do you think they will become obsolete in the face of new digital payment methods? Share your thoughts and opinions in the comments below.

I fail to understand the mostly apples to oranges comparison here.
Credit cards are a means of securing credit. How do mobile payments and cryptocurrencies provide you credit? The only similar option that I can see is the BNPL option. Would you care to compare the interest rates and fraud protection mechanisms of CCs v/s BNPL?

 

[CC-Muncher]

I fail to understand the mostly apples to oranges comparison here.
Credit cards are a means of securing credit. How do mobile payments and cryptocurrencies provide you credit? The only similar option that I can see is the BNPL option. Would you care to compare the interest rates and fraud protection mechanisms of CCs v/s BNPL?

credit card interest rates in India typically range from 36% to 45% per annum, whereas BNPL interest rates are usually lower than CC interest rates, ranging from 0% to 20% per annum.

Both credit cards and BNPL providers offer fraud protection mechanisms to their customers. Credit cards provide zero liability protection, purchase protection, and fraud alerts, while BNPL providers offer chargeback protection and purchase protection.

credit cards typically have annual fees, whereas BNPL providers usually do not. Credit cards also often offer rewards programs such as cash back, points, or miles, while BNPL providers generally do not offer such programs. It is worth noting that using a credit card can have a positive impact on your credit score, while BNPL usage may have a negative impact.

the best payment method for you will depend on your individual needs and circumstances. If you are looking for a payment method with low interest rates and strong fraud protection, a credit card may be a good option for you. On the other hand, if you prefer a payment method with no annual fees and flexible repayment options, BNPL may be a good option.

 

[Copycat]

In addition to traditional physical credit cards, many banks, such as HDFC, are now offering digital UPI credit cards that are integrated with RUPAY and UPI. This integration allows users to access their credit card information and make transactions through their mobile phones, eliminating the need to carry a physical card. For banks, this means a reduction in costs associated with producing and distributing physical cards. For users, it offers greater convenience and flexibility, as all necessary credit card information is accessible through their mobile devices. Overall, this integration is a win-win situation for both banks and customers.

Aren't you kind of answering your own question here? In the first post you speculate about the possible death of credit cards and in your second, you talk about new payment methods integrated with credit cards. Whether it is virtual or physical, it is still a credit card

 

[Copycat]

credit card interest rates in India typically range from 36% to 45% per annum, whereas BNPL interest rates are usually lower than CC interest rates, ranging from 0% to 20% per annum.

Both credit cards and BNPL providers offer fraud protection mechanisms to their customers. Credit cards provide zero liability protection, purchase protection, and fraud alerts, while BNPL providers offer chargeback protection and purchase protection.

credit cards typically have annual fees, whereas BNPL providers usually do not. Credit cards also often offer rewards programs such as cash back, points, or miles, while BNPL providers generally do not offer such programs. It is worth noting that using a credit card can have a positive impact on your credit score, while BNPL usage may have a negative impact.

the best payment method for you will depend on your individual needs and circumstances. If you are looking for a payment method with low interest rates and strong fraud protection, a credit card may be a good option for you. On the other hand, if you prefer a payment method with no annual fees and flexible repayment options, BNPL may be a good option.

In most cases the protection mechanisms are far superior in the case of credit cards v/s BNPL. You've acknowledged the same in your own post.

No one is forcing you to take a CC with fees. There are a large number of credit cards available on an LTF basis. Did you also forget the most important difference that when used responsibly a credit card provides you free credit?

Also, your statements get even more confusing. See the parts highlighted in red. Do CCs have lower interest rates or BNPL?

 

[CC-Muncher]

In most cases the protection mechanisms are far superior in the case of credit cards v/s BNPL

No one is forcing you to take a CC with fees. There are a large number of credit cards available on an LTF basis. Did you also forget the most important difference that when used responsibly a credit card provides you free credit?

Also, your statements gets even more confusing. See the parts highlighted in red. Do CCs have lower interest rates or BNPL?

You are absolutely correct "Credit cards if used wisely can fetch you rewards". My main thought for this post was to know what others think about new digital payment methods like Digital Cards, etc. I am in no way denying the fact that credit cards can reap a lot of benefits.

 

[phagocyte536]

CC is going nowhere IMO. The target customer base for a CC and BNPL is very different. The way I see people using lounge in airport, I only see increase in adoption.

The growing middle class is seeing value in rewards, miles etc - youtube is making them mainstream

 

[caabhi]

In recent years, there has been a growing trend towards alternative payment methods that have led some to question the future of credit cards. Many people, especially younger generations, are increasingly using digital payment methods that offer greater convenience and flexibility compared to traditional credit cards.

There are several reasons why people are moving away from credit cards. Firstly, credit cards often come with high-interest rates and fees that can quickly spiral out of control, leading to crippling debt. Secondly, some consumers are hesitant to use credit cards due to concerns about fraud and identity theft. Finally, alternative payment methods, such as mobile payments, cryptocurrencies, and buy now, pay later options, offer greater convenience and flexibility than credit cards.

While credit cards still offer benefits such as rewards programs and fraud protection, it remains to be seen whether they will continue to be popular in the future. As more people become aware of the downsides of credit cards and the benefits of alternative payment methods become more widespread, credit cards may become less popular.

What do you think about the future of credit cards? Do you guys believe they will continue to be an essential part of our financial lives, or do you think they will become obsolete in the face of new digital payment methods? Share your thoughts and opinions in the comments below.

Not in foreseeable future, the digital payments are good for transactions upto certain limit, but the benefits attached with CC make them lucrative and are hard to replace.

 

[CC-Muncher]

CC is going nowhere IMO. The target customer base for a CC and BNPL is very different. The way I see people using lounge in airport, I only see increase in adoption.

The growing middle class is seeing value in rewards, miles etc - youtube is making them mainstream

You have very correctly mentioned "the increase in adoption".

It's just like prepaid recharges, we used to do talk time recharge and back in those days we never thought it will end and a new model of recharge plans would evolve. Initially, Jio introduced unlimited talk-time plans and others followed suit. They made it cheaper than the old talk-time plans, but now it's more costly and there is no option to go back.

IMO, it's all about changing the end-users habit of spending. Our parents never used credit cards and today we have a handful of them and are ready to have some more. Why did this happen? Because they lured us with all the rewards/cashback/offers. I don't deny that we are seeking our benefits and losing anywhere, but the fact is we are getting more and more addicted to credit cards, we have this whole Technofino community around it to prove this fact.
(I am just trying to gather opinions what are the possibilities ahead)

 

[CC-Muncher]

Not in foreseeable future, the digital payments are good for transactions upto certain limit, but the benefits attached with CC make them lucrative and are hard to replace.

Credit cards are going digital too!

 

[shushansh]

Credit cards are just getting started in India, still have a long way to go before any saturation. Every new graduate/student today is hyper-aware about their credit score, history and finances (yt and financial education), and given that credit cards have started giving decent rewards now (thanks to Axis and HDFC), the new generation would just increase it's adoption.

And if you're still not convinced, try getting into a lounge any of the India's major airports. We literally have people waiting in lines to enter, I've never seen this in any other airport I've been to outside of India.

Even overall, Indian credit card industry has still got a long way to go. PS: we still don't have a hotel co-branded card, while the states has multiple. PPS: I can definitely see something like a Taj co-branded card years down-the-line, and that's when it'll get real interesting.

 

[amit]

Positive - The less CC crowd makes great reward rate - Peace.

 

[SiddharthR]

Positive - The less CC crowd makes great reward rate - Peace.

Another positive-
"The more illiterate CC crowd makes greatest reward rate." 😂