Are Indians Finally Adapting to Credit Cards?
ππ«πππ’π πππ«π π¬π©ππ§ππ’π§π π«ππππ‘ π§πππ«π₯π² ππππππ ππ‘π ππππ’π πππ«π π¬π©ππ§ππ’π§π π’π§ πππ²β22! According to the stats:
- Total Spending on Credit Card: Rs 1.13 lakh Cr
- Total Spending on Debit Card: Rs 65,957 Cr
Around 63 percent of these transactions are conducted online, with the remainder conducted via offline or point-of-sale machines. That is how the online world and E-Commerce have changed the way we transact now.
Credit card spending has been rising by 8% M-O-M since last year and just in May 22, there has been an additional issue of 20 π₯ππ€π‘ ππ«πππ’π πππ«ππ¬ which is the highest in a month over the past 27 months.
Well, you must be thinking what is the reason behind such a huge surge in credit card utilization month by month. Well, it is not just because HDFC (the market leader in credit cards) resumed issuing credit cards after an 8-month ban by RBI.
It is probably because we have been encountering new trends in consumer behavior and new brands emerging over time, which is leading to high competition.
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With the rise in E-Commerce, lifestyle enhancement, and the introduction of various choices and brands, there is huge competition in the market and there are offers every now and then on credit cards across multiple banks.
Users are tending towards opting for credit cards because they come at a negligible cost when compared to their great deal of advantages.
Just to mention some of the benefits credit cards come with: Offers on shopping brands, Insurance, Cash Backs, Reward Programs, Premium cards come with free airport lounge access, benefits on co-brands, travel discounts, and many more
But how come banks are providing such rewards for their users? You may ask.
Banks do benefit from credit card issuance as most cards come with an annual or joining fee, Late payment fees, and Cash withdrawal fee and Fee from merchants which is usually 2β3% on the transaction.
While both parties are benefitting from credit cards, we cannot deny that credit cards usually offer more than what we pay to the banks. Also, there is no burden unless you are paying your bills on time, in addition to which, your credit history will score well.
Some of them still prefer to stick to debit purchases while some of them choose to opt for credit cards and avail of benefits that are in line with their purchasing habits.
What is your take on availing of credit cards? Will we see a continual rise in credit card expenditure? Do let me know your thoughts below!
