Hello all Hive friend and Leo Lovers
I receive frequent calls from various bank executives who are offering different credit card. Some of these cards come with annual charges, while others are completely free to use, without any maintenance fees or annual subscriptions. Obtaining a credit card in India is relatively easy, especially if you have a steady income. Most banks automatically offer credit cards to individuals who hold salary accounts with them.
I vividly recall a moment 14 years ago when I joined my first job. During my meeting with the bank representative to open a salary account, they also extended an offer for my very first credit card. Nowadays, I continue to receive at least two calls daily from different bank employees pitching their credit card offers, and it can be quite bothersome at times. What's even more amusing is that when we decline their offers, they often inquire about the reason, asking, "Why are you declining, sir?"
India is developing country and holds a major percentage of the world population. In India the credit card market is expending fast, as per the reports as of April 2023, over 86 Million credit cards are in circulation. If we check the figure of last year i.e. 2022, there were 75 Million cards were in circulation so tit is very clear that there is approximately 15% increase if we compare with year 2022.
In April 2023 the credit card market hit the significant milestone for credit card transection in India, even they beat the debit card usage by remarkable margin. The credit cards re cords the 250 millions merchant card transactions in April, the figure was 220 millions last year.
If we compare the total value of credit card transection with the debit card transection then we observed a very big difference. The total total value of credit card transection was 1.33 trillion as compared to the 0.53 trillion attributed to debit card transactions. As the number of credit cards in India approaches nearly 100 million, there is a notable increase in monthly spending on these cards.
It is worth to mentioned that despite the rising number of credit cards, the credit card penetration in India is among the lowest in the world. If we compare the numbers with the population of Indian than we come to know that the numbers are less then the 5% of population only hold the credit cards. The figures are very less when compared to the most of the developed countries.
In a significant change in India's financial landscape, credit card transactions have surpassed debit card usage following the remarkable success of the Unified Payments Interface (UPI). The Unified Payments Interface (UPI) is an instant payment system developed in India, by the National Payments Corporation of India (NPCI). The Reserve Bank of India’s asked the banks to National Payments Corporation of India (NPCI) to link the UPI transection to the credit cards. Recently the NPCI has develop and implemented, the positive effect can be seen on credit card market. Their is substantial surge in credit card transactions, which also shows the change in customer behavior and preferences. After the UPI development in credit card market their are over Rs. 14 trillion worth of money was transected and their were over 8.86 billion transection. The average value of each transection is around Rs. 1600 per transaction.
In last year Rs. 9.8 trillion worth of money was transect using 558 trillion transection. The debit card transections declined by 16% if we compare the transection value and the number increased to 30% in teh number of transection.
Their in no doubt the credit card market is booming and has shown the amerce increase in numbers. The major spend included the purchases across diverse platforms, including e-commerce and physical retail outlets, travel, electronics, dining, and shopping. The reward cards offered on credit card are the another attraction for customers and the UPI payments using the credit cards are really the game changer for both the merchants as well as for the customer. The customer get the easy of use and the merchants get the lower transection fee along with the lower initial setup cost (a QR scanner does not anything as compare to point of sale (POS) machine required for the card swap). No doubt the credit card are really useful if used in disciplined way but cause the big problems if not used properly.
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