Credit Card Use Benefits: Nowadays the use of credit cards is not limited to big expenses or special occasions. Indian families are now using them for daily expenses and digital transactions as well. Keeping this change in mind, credit card companies are also making changes in their reward systems. This shows that the Indian credit card market is now becoming more tailored to the actual needs of consumers.
A typical Indian family makes various types of digital payments every month, such as electricity-water bills, mobile recharge, internet bills, grocery shopping and online shopping. The use of digital medium in these expenses is increasing. However, traditional credit cards typically offer very little rewards on these spending. Most cards focus on travel, hotels and premium services. But this situation is now changing due to the increasing popularity of digital payments and new types of cards.
picture of daily expenses
Many credit cards now offer rewards that take into account daily spending. For example, co-branded cards like PhonePe and HDFC Ultimo also offer rewards on bill payments and other regular purchases. This means that credit card companies are changing their products by understanding the real spending patterns of consumers.
If we look at the budget of a typical Indian family, most of the expenses are on basic needs except rent or EMI. This includes utility bills, mobile recharge, internet, grocery, fuel and other small expenses. A large part of these expenses are nowadays paid through digital means. Still, traditional credit cards offer very few rewards on these spending. There is very little cashback or rewards on small and frequent expenses, which are most important to families. This is why new cards are now solving this problem.
Highlights of the new reward structure
The new co-branded and digital-focused cards offer rewards on everyday transactions and bill payments. There are benefits even on small expenses, which can turn into big savings over time. Additionally, some cards also offer additional rewards at specific online brands and perks like airport lounges. This makes using these cards even more beneficial, as they offer rewards on everyday spends as well as occasional larger spends.
Features of new cards
The biggest feature of these new cards is that the user does not need to track any specific expenditure or meet any target. Rewards are available automatically on everyday transactions, making the process of saving easy and simple. Small gains can turn into big bucks over time.
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Digital payment is an important part of life
As digital payments and UPI are becoming an important part of our lives, credit cards are also changing their reward systems. Now these cards are not limited to just travel or premium services, but are also offering benefits on everyday needs. This shift reflects that financial products are now being designed around consumers’ daily life and spending behaviour, enabling them to save and adopt digital payments.
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