The Future Of Credit Cards In India: Trends To Watch Out For

Posted on Saturday, October 21st, 2023 | By IndusInd Bank

Credit cards have become a handy product for purchases and managing finances. They offer convenience, flexibility and purchasing power to individuals and businesses alike. They have transformed the way we make payments, manage our finances and access funds on credit.

As India continues to experience rapid economic growth and technological advancements, the future of credit cards in the country is set to be even more dynamic and exciting. Keeping track of these trends can help you choose the most suitable credit card for your current and future needs.

Credit card trends in India

1) Contactless payments and NFC technology

Contactless payments have attracted global attention, and India is no exception. Near Field Communication (NFC) technology allows you to make payments by simply tapping your credit card on a point-of-sale terminal. With the push for digital payments and reducing physical contact, NFC-enabled credit cards will become more widespread, enhancing the speed and security of transactions.

2) Digital-first and virtual credit cards

Digital and mobile banking apps are becoming increasingly popular in India. As a result, the concept of digital-first and virtual credit cards is emerging. Here, credit card details are stored digitally and often used for online transactions. Virtual cards offer an added layer of security as they are single-use or limited-use cards, reducing the risk of theft or fraud.

3) Enhanced security measures

With the increasing frequency of cybercrimes and data breaches, credit card security should be top-notch. Biometric authentication, such as fingerprint or facial recognition via the banking app, is being integrated into credit cards to add an extra layer of protection against unauthorised use in case of loss or theft.

4) Sustainable and eco-friendly cards

Environmental consciousness is influencing consumer choices. Many credit card issuers are opting for sustainable materials and eco-friendly practices in card production. Not just that, certain cards offer rewards for environmentally conscious spending, such as cashback for shopping at eco-friendly stores.

5) ‘Buy now, pay later (BNPL)’ options

‘Buy now, pay later (BNPL)’ services are gaining popularity in India. Many credit card companies are incorporating BNPL features. BNPL allows you to pay for your purchases over a set period of time, in fixed instalments, and usually with zero interest. Such flexibility helps in managing finances without repayment burden.

6) Integration with wearable devices

The Internet of Things (IoT) is making its way into the finance sector. Credit cards can be linked to wearable devices like smartwatches. This can make transactions even more convenient and reduce the need to carry a physical card.

7) AI-powered customer service

Artificial Intelligence (AI) is transforming customer service in the credit card industry. Chatbots and virtual assistants are actively used to provide instant solutions to customer queries and concerns. They respond to queries with automated responses and are available 24×7. Such availability makes resolution quick and enhances the overall user experience.

8) Financial education and wellness

Credit card issuers are recognising the importance of financial literacy. Companies have started offering tools and resources to help customers learn about efficiently managing their finances, track spending, and improve their credit scores.

9) Personalisation and tailored rewards

The one-size-fits-all approach is fading away. Issuers are focusing on personalising credit card offers to cater to diverse customer needs. With travel rewards, cashback, dining discounts, entertainment benefits, etc., credit cards are becoming customisable to individual preferences and spending habits.

IndusInd Bank offers multiple credit cards with various rewards and benefits. The process to get a credit card is hassle-free and completely digital, saving you time and effort.

Benefits of IndusInd Bank Credit Cards

• No joining fees: Some IndusInd Bank Credit Cards do not require any joining fee. You just have to complete the application process and get your card delivered.
  
  
• Instant approval: The application for IndusInd Bank Instant Credit Cards is completely digital and is approved in no time. You can get your application approved from the comfort of your home.
  
  
• Ease of transactions: IndusInd Bank Credit Cards allow you to make purchases at various merchant locations, in-store and online. The amount spent can be converted to EMI to make repayment easier.
  
  
• Purchase protection: Certain credit cards provide purchase protection against unauthorised transactions, via IndusInd Bank’s Total Protect feature. This is beneficial in cases of theft or loss of your card.
  
  
• Cashback and Reward Points: IndusInd Bank Credit Cards offer rewards for spending, such as cashback, reward points, air miles or discounts. These rewards can be redeemed for various benefits, including travel, merchandise and gift cards. The best part is that the reward points earned on your IndusInd Bank Credit Cards do not expire, so you can redeem them whenever you want. You can even redeem these reward points for cash in your credit card account.
  
  
• Cash advances: You can withdraw cash from ATMs using your credit card in case of emergencies. However, cash advances often come with higher interest rates compared to regular purchases.
  
  
• You can use your credit card to make payments or transactions in a foreign currency at discounted forex markup rates. This saves you the stress of converting currencies and makes transactions easier.
  
  
• Grace period: The grace period is the time between the purchase date and the due date for the payment. If the outstanding balance is paid in full within the grace period, no interest is charged.
  
  
• Travel benefits: Some IndusInd Bank Credit Cards also offer travel-related benefits, such as travel insurance, airport lounge access, and discounts on flight and hotel bookings.
  
  
• Contactless payments: IndusInd Bank Credit Cards come with the ‘contactless payment’ feature. This feature allows you to make payments with a single tap – without the need to swipe your card or enter a PIN. All you need to do is tap your card on a machine or terminal which accepts contactless payments.

Conclusion

Credit cards have come a long way. The above-mentioned features show that credit cards in India have become an all-round financial product. A credit card can empower you to spend money without worrying about draining your bank account with immediate payments. From travel benefits to purchase protection, there is so much a credit card can do for you.

With the host of advantages IndusInd Bank Credit Cards offer, why wait any longer? Apply for a credit card online here.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.