Credit cards are fast becoming the preferred payment method or option for a large section of consumers. They are steadily helping people take care of evolving financial requirements, especially those arising in emergencies or other sudden and unforeseen situations. At the same time, people are now realizing the need for a smart payment solution enabling a better lifestyle, convenient repayment provision, and instant fulfillment of needs. They are opting for added financial security that can help them overcome emergencies easily. This is where credit cards play a vital role.
The latest trends indicate a progressive year ahead for credit cards in 2023. There are multiple developments that will make this a unique year for this segment. The number of credit cards in the country has been forecasted to continually increase between the years 2022 and 2028, by approximately 3 million cards. This indicates a growth of 7.83% which is a positive sign for the industry as per reports. The number is estimated to touch a whopping 45.43 million credit cards by the year 2028.
Reports also indicate how digital cards are expected to become even bigger trends in 2023. These will be new-age solutions that enable virtual credit and usage across multiple brands and platforms. Hence, more people are expected to opt for the same, particularly those who are looking for seamless financial and credit solutions on the move. Here are some other trends that are worth noting in this regard.
2023- The year of the co-branded credit card
Co-branded credit cards are set to become the next big trend in 2023 along with the overall increase in usage of credit cards on the whole. Most issuers are expected to launch co-branded cards this year with a view toward reaching more digitally-comfortable and savvy consumers who are still new to the formal credit arena. Co-branded cards are expected to draw a sizable market share this year with a stronger value pitch for consumers and many of these will also be deployed across partner brands for higher reach as per several experts.
LazyPay, the popular fintech app for personal loans, bill payments, and instant credit, has embarked on a collaboration with RBL Bank for its one-of-a-kind new-age credit card. This has already attained immense popularity amongst a wide section of users in India.
Co-branded credit cards are issued by financial institutions/banks in association with a partner which could be a financial platform or fintech player, retail partner, and any other brand. Both entities sponsor the credit card which has features offered by both institutions. The transactions and credit underwriting procedures are managed by the bank or financial institution while the co-brand partner takes care of various other aspects including marketing, sales, special offers, and a lot more. Going forward, 2023 should see the growth of co-branded credit cards which will be perceived more as premier offerings or preferred cards for consumers.
Many companies will also scale up overall market share with co-branded cards, successfully foraying into newer markets while also generating higher value for their prospective and current customer base. Banks and financial institutions will be the link between customers and companies for payments, thereby building greater value throughout the entire ecosystem according to experts. Co-branded cards will also offer rewards, cashback, and other discounts or coupons which customers will find immensely attractive. These are some factors that will contribute towards making co-branded credit cards more appealing for a wider user base in 2023. Some of these cards may have joining and annual fees, while some may do away with the same. New-age cards can be digitally obtained with minimal paperwork and swift KYC processes. Millennials are also driving the usage of co-branded credit cards which are highly beneficial from multiple standpoints.
Which is the best credit card for your needs?
The RBL Bank LazyPay credit card is one of the best options for consumers today. It is offered to select LazyPay users, offering diverse benefits and accompanying rewards like cashback on a number of purchases.
Users can also enjoy special offers at partner merchants with this co-branded credit card. There is an easy KYC procedure for availing of the card and this can be done digitally by consumers without any hassles. The credit limit with the card is calculated on the basis of the consumer’s eligibility post-completion of the KYC process. Flat 1% cashback is offered on every transaction and every user gets a sum of Rs. 250 as a one-time cashback on their first transaction with the card. The card can also be used for food orders, OTT platform transactions, bookings, and users can use the card across online and offline stores without any hassles. And for even greater convenience, you have the option to switch to easy EMI repayment options, so you can ensure all your needs are met without the tension of immediate repayment. Apart from this, you also get the advantage of exclusive offers on top brands and contactless payments.
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Credit cards are steadily beginning to expand their scope of usage and operations, beginning with the advent of new-age digital cards and other technologically-enabled solutions which seamlessly integrate both online and offline transactions. 2023 is expected to witness a quantum leap for credit cards as per several reports. Usage figures should considerably increase over this year, going by the market trends from the last few years. At the same time, there could be more co-branded offerings in the credit card segment according to reports. These are steadily becoming immensely popular options for consumers in recent times, enabling diverse benefits at the same time.
There are several reasons behind the increasing popularity and usage of credit cards. These include the propensity to undertake purchases that meet lifestyle needs and aspirations, take care of urgent and unforeseen financial costs, and also create and retain a final layer of security to help tide over various situations with ease. Credit cards are thus expected to grow by leaps and bounds in terms of usage figures and there could be newer features on the anvil as well. Financial planning, especially for exigencies, is something that more people are considering in the aftermath of the pandemic. They now realize that sudden events can take place anytime, necessitating sizable expenditure. This is where a credit card is expected to be a major part of the mainstream finance and payments discourse going forward.
There are several trends that have to be carefully studied in this regard. These reports and figures indicate how credit cards are poised to have a stellar year in 2023, both in terms of higher penetration in the market and also in terms of newer offerings including co-branded solutions.