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RBI has shared a promising picture for the credit card industry in India. By April 2023, there were 86 million credit card users In the country, represents an important 15% increase since last year. This surge in credit card adoption indicates the growing acceptance and usage of credit cards among Indian consumers.
With this trajectory, the credit card market size could reach 100 million users in 2024.
Several factors have contributed to this significant increase in credit card usage.
- Ease of credit card application process,
- technological progress, and
- Streamlined processes implemented by credit card issuers.
Simplification has made it more convenient for individuals to apply for and obtain credit cards, thereby expanding the user base. Additionally, the government’s relaxed regulations and policies have played an important role in promoting the growth of credit cards.
There has also been a significant change in consumer behavior towards credit card usage. With attractive rewards, cashback offers and discounts, there is a growing trend of consumers using credit cards for everyday transactions like groceries, dining and online shopping. This shift reflects growing comfort and confidence in using credit as a payment instrument.
In this changing landscape, it is imperative to anticipate and adapt Current trends shaping the credit card industry in India, To successfully navigate this dynamic environment, it is essential to stay informed about consumers’ changing preferences and behaviors.
In the following sections, let’s explore three notable trends impacting the credit card industry and consumer behavior across the country.
1. Increase in digitalization
contactless payment
The total transaction value of the digital payments market is expected to reach US$254.60 billion In 2024 – Driven by increasing demand for seamless and contactless payment experiences.
Whether it’s making quick purchases at retail stores, paying for public transportation, or dining at restaurants, contactless payments have become the preferred choice for many consumers wanting a one-tap payment option.
The COVID-19 pandemic has also accelerated the adoption of contactless payments. Making payments without physical contact has become especially attractive in the current health crisis.
Credit Card Trends: Consumer Behavior and Online Search Patterns
There has been a significant change in consumer behavior when searching for credit card information. Consumers are turning to Google to research and compare credit card options before purchasing.
This trend is confirmed by insights from the Credit Card Industry Search Trends report published by TechMagnet Report, which reveals a 14.62% increase in online searches related to credit cards In 2023. TechMagnet is one of the largest SEO agencies in India and frequently releases these reports for various industries.
Coming back to the report, the agency’s research shows various question, keyword, And Subject Credit card related things that people search for – which is quite revealing when looked at from the perspective of user intent and message status.
According to Sarvesh BaglaCEO and Founder of Techmagnet, credit card companies should turn to this search data to strengthen their online presence and overall brand presence, including websites and social media. “These combined efforts will increase brand visibility and help reach a broader audience of potential cardholders.”
2. Customized Rewards and Benefits
personalized offers
One-size-fits-all credit card offers are slowly coming to an end.
Issuers must now prioritize personalization, tailoring credit card benefits to meet the diverse needs of customers. From travel rewards and cashback to dining discounts and entertainment perks, credit cards are becoming increasingly customizable to suit individual preferences and spending habits.
This trend can be used by credit card providers to offer a variety of rewards and benefits to their customer base. Keep the application process seamless and completely digital, saving applicants valuable time and effort.
consumer preferences
credit card search trends Show that people are interested in different credit card options.
Customers search for general terms as well as specific terms like “credit card” “Rupay Credit Card” Or “Best Credit Cards in India.” This shows that customers want to find cards that best suit their needs. The number of searches to apply for credit cards also increased, showing that people are actively looking for new cards.
Credit card companies need to offer cards that match what people are looking for, whatever that may be. benefits, convenience, Or Good customer service.
3. Financial Inclusion
access to credit
Access to credit is an important factor in the credit card industry. The search pattern reflects the growing interest in credit card penetration across various cities in India. The increasing search volume for credit cards in cities like Delhi, Bengaluru, Hyderabad, Mumbai, Chennai and Pune indicates growing demand and interest in accessing credit facilities.
Similarly, the significant increase in search volume in cities like Jaipur, Lucknow and Indore further indicates Growing interest in Tier 2 cities For credit card.
There is increasing awareness and willingness to access ‘buy now, pay later’ services among individuals in both metropolitan and small towns in India; Which highlights the need for continued efforts to promote financial inclusion and expand access to credit facilities for all demographics.
alternative platform
Apps are the new battlefield for consumer searches, be it for home loans or credit cards.
The concept of alternative platforms is related to the increasing use of mobile apps to meet financial needs. A remarkable shift towards digital solutions and convenience for managing credit-related operations.
Increase of 33.89% The search volume of credit card apps underlines the increasing reliance on alternative platforms to manage credit card needs. The broader trend towards digitalization and mobile convenience in the financial sector.
It’s pretty clear from the state of the credit card industry right now that personalization is paramount. From tailored rewards to the convenience of digital platforms, consumers want a customized experience that meets their individual needs.
As businesses and consumers, staying aware of these trends is not only important, but essential. And let us not forget that the dynamic nature of the credit card industry is not just a challenge-This is an opportunity for financial service providers to target their audience.
The findings mentioned in the article are taken from a report released by Insights TechMagnet – A Leading Digital Marketing Agency, The report is a valuable marketing tool as it provides information about consumer trends in digital payments. Companies can take informed decisions and gain more credit card users in the competitive financial services market.
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