There is great competition among banks and credit card issuers today because of the increasing popularity of credit cards in India. One of the after-effects of the demonetisation exercise in November 2016 is that more people are switching over to the cashless mode of transactions. Credit card payment is one of the best and most attractive methods of payment. It is handy for both online and offline payments. This increase in credit card usage has prompted banks and credit card issuers to come up with innovative products to incentivise the usage of credit cards. Let us look at the changes in India’s payment landscape due to these new developing payment trends.
Credit Card Payment
Credit card usage is not new to India. People in India have been using credit cards since the early 1980s. The improvement in technology and the increased awareness of the benefits of credit card usage among the younger generation has resulted in more people embracing this mode of payment and preferring it to the others.
Incentives in the offering
There is a need to popularise credit card payment further. Hence, banks have come up with exciting products to incentivise credit card payments.
Here are some of them:
No joining fee/Free lifetime credit cards
Banks have come up with new products whereby they provide free lifetime credit cards to their valuable customers. The advantage of such credit cards is that you do not have to pay any joining fee or annual renewal fee.
Credit cards are available where you get exciting joining perquisites such as bonus reward points for spending up to a specific amount within the initial 30 to 90 days after issuance of the card. These reward points are available over and above the regular reward points that you earn on using the credit card.
Other joining perquisites include gift vouchers from reputed e-retailers like Amazon, Cleartrip travel vouchers, BookMyShow cinema ticket vouchers, and so on. These rewards attract the Gen X generation as they benefit the most from such incentives.
Standard rewards points
Almost all credit cards come with attractive incentives for using it to make payments. You have cards offering attractive points for spending on dining, paying your telecom bills, and for online spending. Similarly, you have another set of reward points for spending on retail purchases.
You can use credit cards to make online as well as offline payments. Some credit cards come with additional incentives when you use them online. Such incentives are in the form of instant cashback offers, and discount offers on existing and new purchases and special incentives for using specific payment apps like Amazon Pay, Phone Pe, and PayTM and so on.
Specific credit cards allow you to accumulate these rewards points without any limit whereas some cards require you to redeem these rewards points within a particular tenure. Redeeming reward points is also pretty easy as you can do that online. It enables you to buy exciting gifts without having to make any payment. Some credit cards also allow you to redeem these reward points against the payment of your credit card bills.
Frequent travellers or businesspersons benefit the most from credit cards that offer travel miles or air miles as rewards for spending on specific credit cards. You can redeem these travel miles to get free air tickets to a destination of your choice. Specific credit cards come with offers like free economy class air ticket for joining these rewards programmes. Businesspersons can also utilise these air miles to get attractive discounts on hotel accommodation and dining at specific hotels and restaurants. These cards also allow you to have free access to various airport lounges across the globe.
Fuel surcharge waivers
People use their credit cards to purchase fuel for their cars and other vehicles. Every purchase comes with a fuel surcharge that is payable to the Government. Today, you have credit cards coming with incentives such as fuel surcharge waiver whereby you initially pay the surcharge and get a refund subsequently in your account as an incentive for using the card. Such cards also come with features like fuel rewards points whereby you get reward points for purchasing fuel at select outlets across the country. You can redeem these reward points subsequently and get free fuel. It is an attractive incentive.
Introductory 0% APR offers
This offer allows you to pay your credit card bills in instalments without attracting any interest. Such offers are available for a limited period of six to nine months. Generally, people use such offers to transfer their existing credit card balances and avail the benefit of the interest-free period.
No interest on Cash Advance
Today, some credit cards come with features like 0% interest on cash advances. Such offers are usually available to credit cardholders having excellent credit ratings.
Besides these rewards points, credit cards come with other features like free accidental insurance, protection against fraudulent usage, waiver of the international transaction fee, and so on.
Credit cards have revolutionised the payment industry today. Banks and credit card issuers have fuelled this revolution with their exciting credit card products thereby bringing about a sea change in India’s payment landscape. You can click on the link to know more https://blog.cred.club/
By Dinesh Mittal
who is a seasoned writer and has over the years contributed quality content on various high-profile websites. He has particularly excelled in niches like Fashion, Business, Entrepreneurship, Education etc. His professionalism, four year’s experience, and expertise make him one of the most sought-after content writers in the field.