IDFC Bank And Epaylater Unveil India’s First Digital Credit Card
IDFC bank in partnership with ePayLater has unveiled India’s first digital credit card. The advantage that the digital credit card holds over normal credit cards is that the customer does not need to go through the arduous process of applying for it. Customers will be able to avail real time credit using the digital credit card via BHIM UPI services and the credit limit will depend on the estimations made by advanced machine learning techniques. The estimation will be calculated using data collected on purchase patterns, social media and device information and digital footprint.
To get a digital credit card, the customer needs to download the ePayLater app. After the credit limit for the user has been calculated, purchases can be made online and offline using the digital credit card. The app allows the user to have a 14-day limit for paying the credit card bill interest free for every purchase made via it. A digital credit card also prevents the hassle of carrying a card, instead you can make transactions directly through your phone.
21 May 2018
India Had 37.48 Million Credit Cards In March 2018
In March 2018, the number of credit cards increased to 37.48 million in India, with 0.55 million new cardholders as per the Reserve Bank of India (RBI). The number of debit cards rose to 861 million, with the addition of 5.6 million cards. India added nearly 6.18 million debit cards and 7.68 million credit cards between March 2017 and March 2018. Credit card transactions grew by 20% year-on-year, while debit card transactions grew by 17.6%. As for the total number of transactions in March 2018, credit cards recorded 127.3 million and 318.9 million through debit cards.
The total transactions in terms of amount through credit cards stood at Rs.44,308 crore in March 2018, a 35% increase in the 12 month period. As for debit cards, the amount transacted stood at Rs.41,857 crore, a 17% increase for the 12 month period. As for the average amount transacted per transaction on credit cards, it rose by 12.4% between March 2017 and March 2018, while debit card average amount transaction fell slightly during the 12 month period.
16 May 2018
Npci Plans To Make It Big In Credit Card Segment
The RBI-backed national payment gateway, National Payments Corporation announced its plans to ramp-up its productivity in the credit card sector. The managing director and CEO of NPCI has said that after stabilising the debit business, the corporation is planning to focus on the credit card sector. The NPCI, which addresses itself as an alternative to the Visa and MasterCard, believes that there is a lot of opportunity for the credit card sector to grow.
11 May 2018
Passengers Can Now Use Credit Or Debit Cards To Book Local Train Tickets
If you a resident of Mumbai, there are chances that you rely on the local trains for your daily commute. According to statistics, more than 2,300 train services are carried out in Mumbai on a daily basis. Also, around 7.5 million people travel using trains every day. For people who rely on local trains, the Central railways has brought some amazing news. Now, travellers can purchase tickets of local trains over the counter or use the Automatic Ticket Vending Machines (ATVM). To use ATVMs, you need to have a smart card, and use the top-up method to purchase tickets. A report by the Central Railways claims that out of the total local train tickets purchased, 25% are bought over ATVMs.
Central Railways will now enable you to purchase tickets on ATVMs using your debit or credit cards! The Centre for Railway Information Systems (CRIS) is currently testing these Point-of-Sale (POS) machines that will soon make a debut in Mumbai.
23 April 2018
4 Things To Do Before Getting A New Credit Card
While some people don't like getting new credit cards at all, there are a few who love to keep a stack for emergency financial expenses. While there is no harm is owning more than one credit card, there are a few things that one needs to keep in mind before getting a new credit card. It is important to make a note of the pointers listed below before one gets a new credit card:
• Consider how it is going to affect your credit score: If you have a fair credit score, you would want to first work on your credit score before getting a new credit card. This way, you will be able to keep your credit utilization in check and your credit score will also not slide down.
• In case you are closing previous accounts make sure to settle debts: A new credit card means new bunch of debts. In order to avoid getting into a debt trap, ensure that you close your old debts. Settle all your previous credit card dues and close all those accounts before getting a new credit card.
• Compare sensibly before getting a new credit card: Before getting a new credit card, make sensible comparisons between the features and benefits that both the credit card are offering. Opt for a new credit card only if it is going to provide you better rewards and is equipped with superior features and benefits.
• Take a note of the interest rate: Different banks offer credit cards with different interest rates. Before you opt for a new credit card, ensure that the interest rate is lower than your previous credit card or at least matches it. Opting for a credit card that charges a higher rate of interest in comparison to your older card, is not going to help you.
11 April 2018
Why Having A Credit Card Is Important?
There's a common belief that rules the conscience of people across the world-credit cards are synonymous to trouble. However, in current times, credit is treated as king. How often do you hear someone buying a car or a house in cash? If used wisely, one can reap several benefits from a credit card. Not willing to carry cash in one's pockets is the most basic of them all. Listed are below are a few more reasons that will prove that having a credit card is not a bad idea after all:
• Using a credit card can help the cardholder to earn travel discounts. Quite a lot of credit card companies have tie-ups with various airlines, hotels, and even car rental companies. So, when one spends a certain amount on their credit card, they get discounts on availing these services.
• Using credit cards can help one bag reward points that they can redeem in the form of attractive products from the bank's catalogue. Most credit cards come with membership rewards program that the cardholder can make use of.
• Almost all the credit cards available in India offer opportunities to earn cashback incentives each time one uses it. The cashback can be range between 5% and 15%.These offers actually help the cardholders to avail handsome discounts.
• Build a healthy credit score: When used wisely, a credit card can help the cardholder to build a good credit score. A healthy credit score helps the cardholder to avail loans as and when they need it. This proves to be of great help during one’s time of emergency.
• Cardholders can also bag travel insurance while paying for their travel tickets using a credit card. Some credit card companies offer travel insurance that has attractive features like baggage loss allowance, accident coverage, among others.
3 April 2018
Using a secured credit card to build credit score
With credit score becoming an important factor to get any kind of credit line, people who wish to apply for a credit card or a loan for the first time find it difficult to get an instant approval. For all such people availing a secured credit cards is one of the easiest method to build a credit score.
Secured credit cards, unlike regular credit cards, do not require the applicant to have a credit history or credit score. Anyone can apply for a secure credit card provided they can afford to invest in a fixed deposit with the respective bank. The bank considers the fixed deposit amount as a security deposit and offers 70-80% of the deposited amount as credit limit on the card. While a few banks require the cardholder to maintain the fixed deposit as long as they use the credit card, a few others allow the customer to close it after a certain period, say one year.
Therefore, those who want to build a credit score can apply for secured credit cards and use them appropriately to make the most. Making sure the outstanding is cleared on it and the usage on the card is consistent are the main factors affecting the credit score. Taking care of them will help build a decent score in less time.
22 February 2018
The Best Alternative To Credit Cards
Credit cards are great options for transactions since there is no need of carrying cash or worry about exhausting the bank balance. Moreover, the offers, discounts, and reward points also let consumers make cutbacks on their spending. Nowadays, people can apply for loans against their credit cards if they can repay the debt on time. But bad credit score or limited source of income can make a person ineligible for a credit card. as well as the reason that the applicant lives in a non-serviceable area. However, for instances like these, one can also become a cardholder through secured credit balance.
A secured credit card is issued by the bank against the fixed deposit account an applicant has in the particular bank. While the credit limit is usually 80-90% of the amount in FD, most banks allow 100% cash disposal limit. A secured credit cardholder can enjoy, along with the general features of a regular credit card, the advantages of - Building good credit score with regular transactions which also boosts the assets mix. Availing financial access in case of emergencies as the FD account acts as collateral thus providing security against EMIs and loans. The almost guaranteed approval for the card because of lessened eligibility criteria.
7 February 2018
Indians are more inclined towards digital payment solutions: Study
In a study conducted by Global payment solutions company, Visa, in collaboration with YouGov, it was found that Indian consumers are not hesitant to adopt new forms of digital payment solutions as long as they are safe, convenient and efficient.
The study was conducted to know the pulse of Indian consumers and their views about digital payment systems and the country’s transition towards digital economy.
Of the total people surveyed, 78% expressed their inclination towards new forms of payments. 87% stated ease of transition is the main factor that encourages them to use new type of digital payments.
Indian is slowing moving towards contactless payment technology, IoT, simplified and faster e-commerce experience, which define the next wave of future payment solutions.
While people prefer new payment solutions, it was also found that they give more importance to security of their transactions. Almost 80% of the surveyed think about security than convenience while using digital payment modes or making online payments. The opinion has been found similar across ages, gender, income, and education levels.
For the Indian consumers to move away from cash based transactions, convenience, efficiency and speed of transaction offered by digital payment modes are the main reasons, found the study.
Other key findings about the barriers to digital transactions include - merchants accepting only cash, as expressed by 41% people, concerns about security of digital payments, said 39%, and another 52% find modes of payments as key barriers.
Conducted across three countries – Sri Lanka, India and Bangladesh, the study also found that millennials are more likely to do digital payments on a daily basis for shopping at supermarkets, departmental stores, fast food centres, online, and for cab services.
People from the higher income group are found to embrace digital payment solutions compared to other groups.
The cash usage, as per the study, was marginally declined from 33% in 2016 to 31% this year and is projected to come down to 25% over the next 12 months.
Card usage and other digital payment methods continue to rise with the current year recording 36% compared to the previous year’s 34%. It is expected to touch 39% in the next 12 months.
16 November 2017
Credit card usage hits record high in India
The quantum of credit card-users in circulation in India has hit an all-time record, with an increasing proportion of the population using plastic money instead of hard cash.
According to the Reserve Bank of India (RBI), around 29.8 million credit cards have been issued. This figure is true as of March 31, 2017, and is a significant increase to the the previous high of 28 million cards, the figure achieved in March 2008.
The increasing percentage of defaults during 2007-2008 caused a fall in credit card users in India. Post the 2008 economic slowdown, the number further fell to 17.65 million, the number in March 2012. However, since then, credit card usage has seen a rise, and not just in numbers. Values of transactions has shot up correspondingly. By the end of March 31, 2017, spending via credit card was found to be Rs33,619.6 crore which is a 275% jump over Rs.8,958 crore, the figure in March 2012, as per RBI data. This is an indicator that credit card holders are now more inclined to actually use them, something of a rarity in the past.
Reasons for the growth are several – including an increased comfort-level Indian banks have in issuing credit cards to customers due to easily accessible credit scores from firms like CIBIL. Credit scores indicate the borrower's’ financial discipline and possibility of defaulting. Moreover, banks these days have limited issuing cards to their own customers, which keeps them better informed and secure.
What’s helping the most is the e-commerce boom the country is experiencing. With more people shopping online today, usage of digital payments - including credit cards – is now more popular than ever. Add to that the various offers on credit cards which make them all the more lucrative – due to cash-backs and reward programs and credit cards are emerging as a preferred instrument of making payments online. With this boom in people becoming increasingly comfortable spending online, e-payments are estimated to grow by 10 times to $500 billion by 2020, according to a Google-BCG report.
12 June 2017