Credit Card Industry Trends in 2024: Insights & Customer Preferences - Hindustan Times

Credit Card Industry Trends in 2024: Insights & Customer Preferences

Published on Mar 23, 2024 12:34 PM IST

Let’s explore the latest trends in India's credit card industry and delve into the search factors driving the industry growth.

Credit Card Industry Trends in 2024
Credit Card Industry Trends in 2024
ByHT Brand Studio

RBI shares a promising picture for the credit card industry in India. As of April 2023, there were over 86 million credit card users in the country, reflecting a significant 15% increase from the previous year. This surge in credit card adoption indicates a growing acceptance and utilization of credit cards among Indian consumers.

With this trajectory, the credit card market size could reach 100 million users in 2024.

Several factors contribute to this notable growth in credit card usage.

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  • An ease in the credit card application process,
  • Technological advancements, and
  • Streamlined procedures implemented by credit card issuers.

The simplification has made it more convenient for individuals to apply for and obtain credit cards, expanding the user base. Additionally, relaxed regulations and policies from the government have played a significant role in fostering credit card growth.

There has also been a notable shift in consumer behavior toward using credit cards. With attractive rewards, cashback offers, and discounts, consumers are increasingly inclined to use credit cards for day-to-day transactions such as groceries, dining, and online shopping. This shift reflects a growing comfort and confidence in utilizing credit as a payment tool.

In this changing landscape, it is imperative to anticipate and adapt to current trends shaping the credit card industry in India. To navigate this dynamic environment successfully, it is essential to stay informed about the evolving preferences and behaviors of consumers.

In the following sections, let’s explore three notable trends expected to influence the credit card industry and consumer behavior across the country.

1. Increased Digitization

Contactless Payments

The Digital Payments market is expected to reach a total transaction value of US$254.60 billion in 2024 - driven by the growing demand for smooth 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 a preferred choice for many consumers seeking a one-tap payment option.

The COVID-19 pandemic also accelerated the adoption of contactless payments. Making payments without physical contact has become particularly appealing in the current health crisis.

Credit Card Trends: Consumer Behavior and Online Search Patterns

There has been a noticeable shift in consumer behavior while searching for credit card information. Consumers are turning to Google to research and compare credit card options before getting one.

This trend is corroborated by insights from a Credit Card Industry Search Trends report published by Techmagnate report, which reveals a 14.62% increase in online searches related to credit cards in 2023. Techmagnate 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 the various queries, keywords, and topics related to credit cards that people search for - which is quite revealing when seen from the perspective of user intent and message positioning.

According to Sarvesh Bagla, CEO and Founder of Techmagnate, credit card companies must turn to this search data to strengthen their online presence and overall brand presence, including websites and social media. “These combined efforts will enhance brand visibility and help with reaching a broader audience of prospective cardholders.”

2. Customized Rewards and Benefits

Personalized Offerings

The one-size-fits-all credit card offers are slowly dispersing.

Issuers should now prioritize personalization, tailoring credit card benefits to meet diverse customer needs. From travel rewards and cashback to dining discounts and entertainment perks, credit cards are increasingly customizable to suit individual preferences and spending habits.

This trend can be utilized by credit card providers to give a range of rewards and benefits to their customer base. Keep the application process seamless and entirely digital, saving applicants valuable time and effort.

Consumer Preferences

The Credit Card Search Trends show that people are interested in different credit card options.

Customers search for general terms like "Credit Card" and also for specific ones like "Rupay Credit Card" or "Best Credit Card In India." This suggests customers want to find cards that are suited to their needs. The number of searches for applying for credit cards has 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, whether it's benefits, convenience, or good customer service.

The Credit Card Search Trends
The Credit Card Search Trends

3. Financial Inclusion

Access to Credit

Access to credit is a significant factor in the credit card industry. Search patterns reflect growing interest in credit card accessibility across various cities in India. The increasing search volumes for credit cards in cities like Delhi, Bengaluru, Hyderabad, Mumbai, Chennai, and Pune indicate a rising demand and interest in accessing credit facilities.

Access to credit
Access to credit

Similarly, the notable growth in search volumes in cities such as Jaipur, Lucknow, and Indore further signifies growing interest in tier 2 cities for credit cards.

India is witnessing a growing awareness and desire among individuals in both - metropolitan and smaller cities -- to access ‘Buy Now, Pay Later’ services; which highlights the need for continued efforts to promote financial inclusion and expand access to credit facilities for all demographics.

Alternative Platforms

Apps are the new battleground for consumer searches, be it for home loans or credit cards.

The concept of alternative platforms pertains to the increasing use of mobile apps for fulfilling financial requirements. A notable shift towards digital solutions and convenience for managing credit-related tasks.

The 33.89% increase in search volumes for credit card apps underscores the growing reliance on alternative platforms for managing credit card requirements. A broader trend towards digitalization and mobile convenience in the financial sector.

Search volumes for credit card apps
Search volumes for credit card apps

What’s extremely clear from the state of the credit card industry right now is that personalization is paramount. From tailored rewards to the convenience of digital platforms, consumers want customized experiences that cater to their individual needs.

As businesses and consumers alike, staying abreast of these trends isn't just important—it's essential. And let's not forget, that the dynamic nature of the credit card industry isn't just a challenge—it's an opportunity for financial service providers to target their audience.

The search insights mentioned in the article are sourced from a report released by Techmagnate - a leading digital marketing agency. The report is a valuable marketing tool because it provides insights into consumer trends in digital payments. Companies can make informed decisions and get more credit card users in the competitive financial services market.

Disclaimer: This article is a paid publication and does not have journalistic/editorial involvement of Hindustan Times. Hindustan Times does not endorse/subscribe to the content(s) of the article/advertisement and/or view(s) expressed herein. Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the view(s), opinion(s), announcement(s), declaration(s), affirmation(s) etc., stated/featured in the same.

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