Axis credit cards Lounge Access Program Revision from 1st May 2024

This is bound to happen with every other Bank due to Increase in Credit card holders/Viral Reels/Misuse of cards or Features

Just a decade ago, credit cards were a rarity, with stringent eligibility criteria But Here we are 

The total number of credit  cards issued increased from 4.33 crores as on 31^st December 2004 to 

With such craze of these plastic cards , Credit card providers are trimming benefits

In the fast-paced world of finance, credit cards have long been our trusted companions, offering a myriad of benefits and rewards. However, if you're an avid credit card user, you may have noticed a recent trend – the devaluation of these once-lucrative benefits

In the financial year 2023, there were around three billion transactions made via credit cards across India

Credit card issuance has grown significantly in India at a compound annual growth rate (CAGR) of 20% in the last four years

Among the private sector players, HDFC Bank continued to lead with 19.81 million cards in circulation in December 2023
Other players include ICICI Bank with 16.48 million, SBI Card with 18.48 million cards and Axis Bank with 13.58 million.

While point of sale transactions dipped slightly to ~58,300.18 crore from ~59,014.93 crore in November, e-commerce payments rose to ~1.06 trillion

This represents an 81% increase in the number of active credit cards in the country

Credit card transactions in Dec 2023 reported a 32 per cent year-on-year jump from ~1.25 trillion in December 2022, reflecting a robust expansion

Along with the number of credit cards issued, the spending through them was zooming too.

Credit card spending hit a fresh record high in October 2023 when it reached Rs 1.72 lakh crore
And in the past three months, Indians have spent nearly Rs 5 lakh crore via credit cards – nearly 2% of India’s total GDP

With greater credit card adoption and rising spends, defaults are rising too 
In 2022-23, credit card defaults stood at Rs 4,072 crore, which was over Rs 950 crore higher than the default of Rs 3,122 crore in 2021-22

Fun Facts - Banks in India having a networth of Rs 100 crores and above can undertake credit card business either departmentally or through a subsidiary company set up for the purpose

Some of the key trends in the credit card space are analyzed below:

• FinTech disruption: A number of FinTechs, new-age banks and original equipment manufacturers (OEMs) have entered the credit card issuance space. These players are entering into co-branded partnerships with banks and providing customers with the best in-class services.
• Better mobile apps: Customers today expect better mobile applications with best-in-class user-experience(UX)/user-interface (UI), features and do-it-yourself (DIY) services. A number of issuers have already started working on this front.
• New risk models: Card issuers are exploring various new credit risk models apart from the traditional credit rating model. These models can cater to customers with and without a credit score.
• Contactless payments: Customers are preferring mobile-based contactless, QR and token payments
  Fun Facts -  In a research, it is found that 37 per cent of new credit score consumers are under 25.
  
  Who knows what future holds But for now credit card pandemic is gripping India
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That image "The Devaluation Race", which newspaper did you get that from?