New Delhi: Access and popularity of credit cards Tier-2 and 3 cities And cities have seen significant growth, found a recent consumer study conducted by ZET, India’s leading fintech platform.
Study highlights a significant bias towards fuel Cash-Back Credit CardTravel and e-commerce credit card adoption rates are also seen increasing in 2023.
As fuel expenses are increasing, fuel credit card Experiencing a significant growth of 17% year-on-year in 2023, emerging as a preferred option in tier-2 and tier-3 cities.
These cards typically offer cashback, reward points or discounts on fuel purchases, attracting a diverse consumer base, especially in smaller cities and towns.
Among the top choices in the fuel cashback category, BPCL SBI Credit Card, Indian Oil Kotak Credit Card and IDFC HPCL Credit Card have secured the three highest positions. Popular Choice, This growth in credit card usage reflects evolving consumer preferences and the increasing importance of cash-back benefits, especially in India’s growing small towns and cities.
In 2023, credit card trends in tier-2 and tier-3 cities of India showed a notable shift towards travel and e-commerce credit cards.
The increasing accessibility of travel and increasing desire for leisure activities have driven the demand for travel credit cards, which are witnessing a significant growth of 27% year-on-year.
Features like air miles, hotel discounts and travel-related rewards have found resonance among consumers in smaller towns, with SBI IRCTC, Axis Vistaar and IDFC Vistaar emerging as the top choices. Additionally, e-commerce credit cards have gained popularity, seeing a substantial growth of 24% year-on-year in 2023. Due to increasing internet penetration and an improved logistics and delivery ecosystem, these cards, such as Tata New HDFC Credit Card, Swiggy HDFC Credit Card and Axis Flipkart Credit Card, offer special benefits such as rewards, cashback and discounts on online purchases.
These trends underline the growing preferences and aspirations of consumers in Tier-2 and Tier-3 cities, emphasizing the importance of tailored credit card offerings.
ZET CEO Manish Shara said credit card adoption in India has increased, with the number of owners expected to reach 10 crore by early 2024, from 7.5 crore in April 2022. Shara attributes this growth to factors like increasing urbanization and increasing income. , and the government’s push for digital transactions. He lauded Tier-2 and 3 cities for driving this growth and contributing to financial inclusion in new markets.
The study shows that new-to-credit (NTC) consumers have increased by 19% year-on-year, of which almost 50% are under 25 years of age. Among NTC consumers, the most preferred credit cards were AU Small Finance Bank Credit Card, SBI Credit Card and Axis Bank Credit Card.
Study highlights a significant bias towards fuel Cash-Back Credit CardTravel and e-commerce credit card adoption rates are also seen increasing in 2023.
As fuel expenses are increasing, fuel credit card Experiencing a significant growth of 17% year-on-year in 2023, emerging as a preferred option in tier-2 and tier-3 cities.
These cards typically offer cashback, reward points or discounts on fuel purchases, attracting a diverse consumer base, especially in smaller cities and towns.
Among the top choices in the fuel cashback category, BPCL SBI Credit Card, Indian Oil Kotak Credit Card and IDFC HPCL Credit Card have secured the three highest positions. Popular Choice, This growth in credit card usage reflects evolving consumer preferences and the increasing importance of cash-back benefits, especially in India’s growing small towns and cities.
In 2023, credit card trends in tier-2 and tier-3 cities of India showed a notable shift towards travel and e-commerce credit cards.
The increasing accessibility of travel and increasing desire for leisure activities have driven the demand for travel credit cards, which are witnessing a significant growth of 27% year-on-year.
Features like air miles, hotel discounts and travel-related rewards have found resonance among consumers in smaller towns, with SBI IRCTC, Axis Vistaar and IDFC Vistaar emerging as the top choices. Additionally, e-commerce credit cards have gained popularity, seeing a substantial growth of 24% year-on-year in 2023. Due to increasing internet penetration and an improved logistics and delivery ecosystem, these cards, such as Tata New HDFC Credit Card, Swiggy HDFC Credit Card and Axis Flipkart Credit Card, offer special benefits such as rewards, cashback and discounts on online purchases.
These trends underline the growing preferences and aspirations of consumers in Tier-2 and Tier-3 cities, emphasizing the importance of tailored credit card offerings.
ZET CEO Manish Shara said credit card adoption in India has increased, with the number of owners expected to reach 10 crore by early 2024, from 7.5 crore in April 2022. Shara attributes this growth to factors like increasing urbanization and increasing income. , and the government’s push for digital transactions. He lauded Tier-2 and 3 cities for driving this growth and contributing to financial inclusion in new markets.
The study shows that new-to-credit (NTC) consumers have increased by 19% year-on-year, of which almost 50% are under 25 years of age. Among NTC consumers, the most preferred credit cards were AU Small Finance Bank Credit Card, SBI Credit Card and Axis Bank Credit Card.
