The usefulness of digital transactions and credit cards has increased significantly over the past few years.
According to a PwC report, credit card issuance in India has grown significantly over the past four years, at a compound annual growth rate (CAGR) of 20%. Similarly, the number of credit card holders increased from 29 million in March 2017 to 62 million in March 2021.
Industry experts say this may be because financial institutions are increasingly offering innovative tools and the e-commerce industry is emerging. Increasing digitization.
Madhusudan Ekambaram, Co-Founder and CEO of KreditBee and Co-Founder of FACE, said: “The circumstances caused by the pandemic and the increasing focus of customers on the convenience and speed aspect of transportation Translation is an additional catalyst for this growth. He added: “While India has traditionally been a conservative on credit and has always been seen as a debt trap, new startups are bringing a much-needed shift in this mindset by How to raise awareness of the benefits of tools like credit cards every day spending.”
Therefore, according to experts, this has led to increased adoption of the credit instrument and in 2022 this dynamic can certainly continue, with the opening of the economy.
“As customers increasingly demand faster and easier service, this is driving credit card providers to focus on improving their operational efficiency by offering larger sizes,” said Ekambaram. Faster operations, faster access, better prices and transparent payments. According to industry experts, this will lead to increased user awareness of the benefits of the credit instrument, ultimately leading to higher adoption rates.
Profitable and personalized offers from entities like e-commerce service providers are contributing to this trend. In the past two years, cashless transaction has become the preferred transaction choice of most people due to its high efficiency and convenience in operation.
Ekambaram adds, “It is bound to affect the digital credit landscape in the near term, and business-oriented financial institutions already understand this as they increasingly adopt identity-based approaches. attitude to deliver an enhanced customer experience.
That said, experts point out that what credit cardholders don’t understand is that their heavy use of credit cards can lead to a debt spiral that not only ruins their budgets, but also eat into their pocket both their future earnings until it is cleared.
So 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 spend it recklessly.
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