Reserve Bank on India has published data that shows that the number of credit card users in India has soared substantially over the last year. To be particular, there were almost 49 million credit cards in circulation in May 2019, which is around 10.4 million year-on-year increase. This digital push is not merely natural but highly suggestive that people are giving away the antediluvian way of payments and the banks have also successfully managed to create a credit hegemony in the commercial sector. However, the year 2019 has been passed and so does the trends particular to it. Now that we have ingressed into a new decade, it is our duty to seek for those trends in the credit card industry that will help us to make the most out of the year 2020!
The year 2020 is going to bring new trends in Credit Cards market. Source: CNBC
5 Best Trends in Credit Cards For The Year 2020
All of us will agree on the fact that although credit cards have eliminated the need to carry hard cash every time and everywhere, there is still a major scope of improvement in smoothening the payment process. Swiping it through the machines and entering security code each and every time is no less than fret to do. If easy payment options like Tap and Pay are available for a debit card, why cannot it make its way for a credit card? Payment of small amounts says not more than INR 2,000 or such should be allowed to be made without entering any password or PIN. Not only this, but we should also move forward in doing away with the need to carry a credit card itself. Smartphones already possess such payment options enabled through NFC.
Banks and other credit card issuers should start providing digital credit cards instead of plastic ones. There are several perks of having digital cards. First of all, it can be issued instantly upon submission and approval of the credit card application. No matter, where the applicant is and from where he/she is applying, the issuing authority or its representative can provide the credit card number, PIN, etc, within no time. Thereafter, this trend will also allow users to store multiple credit cards, not only in their pockets but also in their smartphones. This, when combined with the first trend mentioned above, will allow credit card holders to make payments using multiple credit cards without actually carrying them.
Not compromising with security while using credit cards in an efficient manner had been a big challenge for the digital world hitherto. However, with the advent of features such as tokenization, users can make hassle-free payments without exposing sensitive data such as their personal information to the retailer or anyone in between the scene. This helps to keep account numbers, PIN, etc. away from hackers and fraudsters. Not exaggerating, but if possible, then we can also witness the usage of biometric verification methods in future for payments done via a credit card.
Motley of Rewards
Rewards make the most of any credit card and most people has this factor on their priority list while choosing a credit card. However, numerous rewards are there and most importantly, rewards are now serving as the primary basis while designing a credit card. The industry is being flooded with reward credit cards such as dining cards, travel cards, petrol credit cards, etc. So what else needs to be added? One should look for more variations. Shopping credit cards are now being divided into a number of categories. For example, there are credit cards that are specifically made for movie lovers, shoppers, etc.
Increased Interest Rates
Interest rates on credit cards are continue to increase in the next year but there is nothing to worry. You only need to improve your debt clearance habit. Extra amount in form of interest is only charged when payment is delayed beyond a certain deadline and this continues to pile up when further payment dates are ignored. Hence, it is recommended that you should build a habit of clearing credit card debts as soon as possible without waiting for the deadline to hit you suddenly. Also, one can choose a credit card that comes with a lower interest rate by comparing all such offerings. A 0% APR is always welcomed in this case.
All the aforementioned trends are most likely to take their forms in 2020 and if inspected properly then it can be deciphered that most of them are going in the favor of credit cardholders. Not only these six but a number of other trends can also be seen as we count the days of the next year.