New Payments Tech: What’s The Future of Credit Cards in India

A banknote (legal tender) is a bank issued negotiable promissory note payable on demand to the bearer. The banknotes replaced the former exchange mechanisms (gold and silver) for availing goods and services. The advent of first plastic card was in 1951 in Franklin National Bank for its loan customers in New York. In India, Andhra Bank commenced the usage of credit cards in 1981. In India the late 1990s and early 2000s witnessed the general perception with regards to using credit cards for daily transactions filled with safety concerns (fear of losing money by card misuse or financial fraud). However, that is not the case anymore as in the present times the average Indian consumer has at least 2 credit cards coupled with a welcoming attitude towards availing finance on credit. As reported by the Reserve Bank of India, the data figures for issued credit cards as of March 2018 are 37.4 million as against 29.8 million issued credit cards in March 2017. Whereas in March 2008 the figures were 28 million cards.

The optimist attitude towards using credit cards stems from the changed buying behaviour of the comfort seeking consumer of today. Where through using credit cards for daily transactions the event of getting each transaction registered takes place (minimising unaccounted financial activities), it also assists in streamlining tax levying. But, there’s a new system that is emerging in the payment sphere: digital (cashless) payments. What these new payment technologies (smartphone-led transactions, NFC-wearable payments technology—NFC payments powered by Mastercard via K Wearables’ K-Ring—, mobile wallets, money-transfer apps, cryptocurrency) mean for credit and cards in India is further discussed in this article.

Yes. Nowadays, a paradigm shift is being witnessed in the financial payments space also attributed to a certain extent to the event of demonetisation and the introduction of the digital India campaign. Following the increased debit cards’ usage post demonetisation, lending cards and newer payment solutions started finding increased acceptance in India. EMI supported purchase gratification is the in-thing now.

Despite of what Amitabh Kant (CEO, Niti Aayog) said about credit and debit cards marching towards the obsolete route in just a couple of years, several banking professionals and experts disagree opining that the (hybrid in nature) future of plastic cards will coexist with the new payment alternatives given the vast demography of the middle class and the unbanked in India. So, what the future holds for credit cards is probably a shift in the ways of their usage.

A couple of such anticipated altered usages of credit cards in the future are as stated below: i) Transportation (a no ticket transit). ii) P2P dealings. iii) Privacy Tools (biometrics). iv) Smart-AI credit cards. vi) Innovative solutions to provide credit cards to the underserved and unbanked in the emerging economies (also promoting financial inclusion and cashless economy).

BON Card: Timely Credit Finances for the Gig Economy

BON Card is one such innovative credit card of the future especially offered for the underserved gig economy workers in India and SE Asia. The BON Card comes with an expense monitoring app—a “Work Now, Pay Later” payment feature for the gig economy workers across India and SE Asia. The Logistics, E-Commerce, Hyperlocal, and 2-sided marketplaces’ merchants can issue BON Cards to empower their workforce for a better secured cashless future.

For BON Card Application: 022-39698234 or contact@bonfleet.com