India's financial scene is changing, and credit cards are at the forefront of this transformation. Once considered a luxury for the wealthy, credit cards are becoming more common and accessible. Credit cards used to be seen as something exclusive for certain people. But now, more people are aware of them, making credit cards available to a broader group of individuals.
In the past ten years, there has been a significant increase in the number of credit card transactions. It shows that more people in India are starting to depend on credit for their financial needs. More and more credit cards are being given out, indicating a shift towards relying more on credit than traditional debit methods.
The future of credit cards in India promises exciting changes with advanced technologies ensuring secure, seamless, and personalised transactions. Beyond mere financial interactions, it envisions a tailored financial world prioritising individual preferences and safety.
As the credit card landscape adapts to include more users and innovative technologies, it reflects shifting financial habits. It signals a future where credit cards seamlessly integrate into daily life, offering a secure and personalised financial experience.
Understanding the growth of credit card users in India
In 2021, more than 1.2 million new credit cards were given out in India, making the total number of people with credit cards 62 million. The trend continued in the second and third quarters of 2022, with even more credit cards issued. Not just that, the total value of credit card transactions increased significantly in the financial years 2021 and 2022.
Looking at this pattern, experts believe that by 2027, the total value of credit card transactions will be around INR 51.72 trillion, growing at 39.22% each year from 2022 to 2027. Simultaneously, the number of credit card transactions is also expected to increase by 26.43%.
Must Read: 8 Things To Know Before Applying For Credit Card
Expected increase in credit card transactions in India
Between 2024 and 2028, the future of credit card technology in India is projected to witness a steady rise, with an expected increase of 2.6 million cards (a 6.07 per cent growth). It marks the fifteenth consecutive year of growth, culminating in an estimated 45.43 million credit cards by 2028, reaching a new pinnacle.
The continuous increase in the number of credit cards over the past years underscores the growing prevalence and acceptance of this financial instrument among Indian consumers, reflecting a sustained trend in its usage and popularity.
Trends to watch out for credit cards in 2024
In the ever-evolving credit card domain, 2024 is all set to introduce transformative trends which promise more convenience and security in your financial dealings.
1. Contactless payments and NFC technology:
Embracing the simplicity and security of Near Field Communication (NFC) technology, contactless payments are gaining substantial traction in India. This method facilitates seamless transactions through a mere tap of your credit card.
2. Digital first and virtual credit cards:
The digital shift is now inevitable. Virtual credit cards, securely stored in digital realms, offer an elevated level of security, particularly for online transactions. Like discreet agents, these virtual counterparts present themselves as single-use or limited-use guardians, mitigating risks associated with theft or fraud.
3. Enhanced security measures:
Prioritising security in an era marked by cybercrimes, biometric authentication, encompassing fingerprints or facial recognition, is an additional safeguard for credit cards. Such measures are instrumental in fortifying the resilience of your card against unauthorised usage in instances of loss or theft.
4. 'Buy Now, Pay Later (BNPL)' options:
Fostering financial flexibility, 'Buy Now, Pay Later' services are gaining prominence. This approach enables individuals to manage their financial obligations over specified periods, characterised by fixed instalments and often lacking interest. Such flexibility alleviates the financial burden associated with immediate repayments.
5. Integration with wearable devices:
Seamlessly amalgamating with the Internet of Things (IoT), credit cards integrate with wearable devices, such as smartwatches. This convergence facilitates even more effortless transactions, eliminating the need for physical card carry.
6. AI powered customer service:
Artificial Intelligence is revolutionising customer service within the credit card industry. Deploying chatbots and virtual assistants ensures round-the-clock availability, providing instantaneous resolutions to customer queries and concerns. This accessibility contributes to swift issue resolution and an enriched user experience.
Must Read: How AI Is Transforming The Banking Experience
7. Personalised rewards:
Parting from the one-size-fits-all paradigm, credit card issuers progressively focus on personalised offerings. Tailored rewards, including travel perks, cashback incentives, and dining discounts, cater to individual preferences and spending patterns.
Kotak 811 credit card: The future of credit cards
Choosing a Kotak 811 credit card offers users a variety of benefits. Let’s check these out below:
1. No annual joining fees with Kotak lifetime free credit card:
Experience affordability from day one! The 811 Kotak Credit Card, a lifetime free credit card, welcomes you without any annual or joining fees, ensuring a free entry into the world of credit.
2. Rs.750 Cashback on 75,000 annual spends:
Unlock savings with every purchase! The Kotak Lifetime Free Credit Card rewards you with Rs. 750 cashback on annual spends of Rs. 75,000, making your transactions even more worthwhile.
3. 500 bonus reward points in the first 45 days:
Start your credit journey strong! With the 811 Kotak Credit Card, enjoy 500 bonus reward points by spending just Rs. 5,000 in the initial 45 days, setting the pace for ongoing rewards.
4. Interest free cash withdrawal up to 48 days:
Access cash with flexibility! The Kotak 811 Credit Card ensures interest-free cash withdrawal for up to 48 days, providing financial freedom and control.
5. Credit limit up to 90% of fixed deposit amount:
Amplify your financial reach! With a credit limit reaching up to 90% of your fixed deposit amount, the Kotak Lifetime Free Credit Card offers substantial flexibility tied to your deposit.
Conclusion
Going forward, credit cards are getting even better with advanced technology, ensuring safer and more personalised financial experiences. The Kotak Lifetime free credit card stands out for its ease of use and staying in tune with these exciting trends.
Choosing the Kotak Lifetime Free Credit Card means more than just a card; it's a step into a future where technology and finances seamlessly come together, making our money matters simpler and more positive. Apply for one today!
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