Credit cards in India are multiplying like rabbits, with a whopping 97.9 million cards strutting their stuff as of December 2023. Hold your horses; that’s not the best part – a jaw-dropping 1.9 million newbies decided to join the plastic party in that very month! Talk about a record-breaking entrance.
Now, let’s rewind a bit. The credit card parade has been on a wild spree for the past five years, ballooning by a jaw-dropping 77 percent from a measly 55.53 million in December 2019. It’s like credit cards are the cool kids on the block, and everyone wants an invite to the party.
So, what’s fueling this plastic revolution? Well, it seems like banks are playing matchmaker, handing out credit cards like candy, and consumers are loving it. No more of that “hard to get” credit card drama. Banks are even throwing in different types of credit cards to keep things interesting. But hold your horses – they’re supposedly tapping the brakes on that now.
Saurabh Bhalerao, the wise associate director at CareEdge, spilled the beans. According to him, changes in how people spend money and the irresistible allure of “zero-cost EMI” deals are the driving forces behind this credit card frenzy.
Now, let’s talk big shots. In the private sector, HDFC Bank is the prom king with a cool 19.81 million cards in December 2023. Not satisfied with that, they proudly announced hitting the 20 million mark in January. SBI Card, ICICI Bank, and Axis Bank are trying to catch up, boasting 18.48 million, 16.48 million, and 13.58 million cards, respectively.
Hold onto your wallets – credit card spending among Indians reached a mind-boggling Rs 1.65 trillion in December 2023. It’s like they’re playing Monopoly with real money! The spending party includes both point of sale (PoS) and e-commerce shenanigans. PoS transactions took a tiny dip, but e-commerce payments decided to flex, reaching Rs 1.06 trillion. Talk about swiping right for online shopping!
Let’s not forget the epic showdown in the credit card transaction arena. HDFC Bank’s cards took the lead with transactions hitting Rs 44,771.87 crore in December. ICICI Bank and Axis Bank were not far behind, flexing their plastic muscles.
Hold your horses again – there’s a twist in the plot. SBI Card, the public sector underdog, stumbled a bit, with transactions dropping to Rs 29,249.29 crore from the November glory days. Someone get them a cup of coffee – or maybe a credit card with better luck!
Overall, credit card transactions in December 2023 strutted with a 32 percent year-on-year growth from the previous year. It’s like the credit cards are training for a marathon, and they’re not planning on slowing down anytime soon. Stay tuned for the next episode of “As the Credit Card Swipes.”