This is
bound to happen with every other Bank due to
Increase in Credit card holders/Viral
Reels/
Misuse of cards or
Features
Just a decade ago, credit cards were a rarity, with stringent eligibility criteria But Here we are
The total number of credit cards issued increased from 4.33 crores as on 31st December 2004 to
97.9 million outstanding credit cards, with a record 1.9 million additions during the month alone As of December 2023
With such
craze of these
plastic cards ,
Credit card providers are
trimming benefits
In the fast-paced world of finance, credit cards have long been our
trusted companions, offering a myriad of benefits and rewards. However, if you're an avid credit card user, you may have noticed a
recent trend – the devaluation of these once-lucrative benefits
In the financial year
2023, there were around
three billion transactions made via credit cards across India
Credit card issuance has grown significantly in India at a compound annual growth rate (CAGR) of
20% in the last four years
Among the private sector players,
HDFC Bank continued to lead with 19.81 million cards in circulation in December 2023
Other players include
ICICI Bank with 16.48 million, SBI Card with 18.48 million cards and
Axis Bank with 13.58 million.
While point of sale transactions dipped slightly to ~58,300.18 crore from ~59,014.93 crore in November, e-commerce payments rose to ~1.06 trillion
This represents an 81% increase in the number of active credit cards in the country
Credit card transactions in Dec 2023 reported a 32 per cent year-on-year jump from ~1.25 trillion in December 2022, reflecting a robust expansion
Along with the number of credit cards issued, the
spending through them was zooming too.
Credit card spending hit a fresh record high in October 2023 when it reached Rs 1.72 lakh crore
And in the past three months, Indians have spent nearly Rs 5 lakh crore via credit cards – nearly 2% of India’s total GDP
With greater credit card adoption and rising spends, defaults are rising too
In 2022-23, credit card defaults stood at Rs 4,072 crore, which was over Rs 950 crore higher than the default of Rs 3,122 crore in 2021-22
Fun Facts - Banks in India having a networth of Rs 100 crores and above can undertake credit card business either departmentally or through a subsidiary company set up for the purpose
Key trends in the credit card space
Some of the key trends in the credit card space are analyzed below:
- FinTech disruption: A number of FinTechs, new-age banks and original equipment manufacturers (OEMs) have entered the credit card issuance space. These players are entering into co-branded partnerships with banks and providing customers with the best in-class services.
- Better mobile apps: Customers today expect better mobile applications with best-in-class user-experience(UX)/user-interface (UI), features and do-it-yourself (DIY) services. A number of issuers have already started working on this front.
- New risk models: Card issuers are exploring various new credit risk models apart from the traditional credit rating model. These models can cater to customers with and without a credit score.
- Contactless payments: Customers are preferring mobile-based contactless, QR and token payments
Fun Facts - In a research, it is found that 37 per cent of new credit score consumers are under 25.
Who knows what future holds But for now credit card pandemic is gripping India
👳
