PARTNERS IN GROWTH

CO-BRANDED CREDIT CARDS CREATE VALUE FOR BOTH CUSTOMERS AND PARTNERING ORGANISATIONS

- NACHIKET KELKAR

Digital payments have picked up significantly over the last few years in India. While UPI (unified payments interface) remains the dominant platform for such payments, credit cards, too, have been growing strongly, with more and more people embracing its convenience.

According to consulting firm PwC, 16 million credit cards were added in 2023-24, and there are more than 100 million cards currently active in India. Transaction volumes and value have also risen 22 per cent and 28 per cent, respectively. PwC estimates the number of credit cards to touch 200 million by the 2028-29 financial year.

Allowing RuPay credit cards to link to UPI has been a boost for credit card growth. On an average, credit card transactions via UPI occur 21 times a month, which is four times more frequent than traditional physical credit cards, according to PwC. Overall, credit card transactions are likely to increase 21 per cent in volume and 18 per cent in value, leading to an estimated 9 billion transactions and total spending of 40 lakh crore by 2028-29.

Loyalty and rewards programmes are another reason people, especially the Gen Z, are finding credit cards attractive. As the usage and penetration have grown, card issuers have tapped in to the vast ecosystem, inking partnerships for co-branded credit cards that come with even more benefits, such as cashbacks on popular online platforms and accelerated rewards on partner merchants.