Credit card trends to watch in 2022


Over the past couple of years, cashless transactions have become the preferred transaction choice of most people due to their high efficiency and convenience in operations.

Over the past couple of years, there has been a massive increase in digital transactions and the usefulness of credit cards. According to a report from PwC, credit card issuance has grown significantly in India at a compound annual growth rate (CAGR) of 20% over the past four years.

Likewise, the number of credit card holders also increased from 29 million in March 2017 to 62 million in March 2021. Industry experts say this may be associated with the increased affinity of financial institutions to offer innovative instruments. , to the growing prominence of electronic commerce. industry and enhanced digitization.

Madhusudan Ekambaram, Co-Founder and CEO of KreditBee and Co-Founder of FACE, said: “The circumstances induced by the pandemic and the increased focus by customers on convenience and speed aspects in transactions is a catalyst. additional of this growth. ”

He adds: “While India has been traditionally conservative towards credit and has always been seen as a debt trapping instrument, new start-ups are bringing much needed change in this mindset by raising awareness of the benefits of debt. ‘tools like daily spending credit cards.

Therefore, according to experts, this has resulted in increased adoption of the credit instrument, and in 2022, the momentum can certainly be expected to continue, with the opening of the economy.

Ekambaram says: “As customers demand more and more ease and speed in services, this has further motivated credit card providers to focus on improving their operational efficiency by offering faster activation, faster access, better prices and transparent payments. “

According to industry experts, this in turn will lead to increased awareness among users of the benefits of the credit tool, ultimately leading to higher adoption rates. Lucrative and personalized offers from entities such as e-commerce service providers are contributing to this trend.

Over the past couple of years, cashless transactions have become the preferred transaction choice of most people due to their high efficiency and convenience in operations.

Ekambaram adds, “It will certainly influence the digital credit landscape in times to come and business-oriented financial institutions have already understood this as they increasingly adopt nuanced approaches to deliver enhanced customer experiences. ”

That said, experts point out that what credit card holders don’t understand is that heavy use of their credit card can lead to a spiral of debt that will not only ruin their budgets, but also eat into everyone’s mind. their future income until it is settled. Therefore, keep in mind that while credit cards are a great addition to anyone’s wallet, people shouldn’t think of them as pocket money and spending it in a big way. reckless.

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