2008-05-19
The insurgence of credit cards in Indian economy
Issuers of credit cards have just completed a survey indicating the fairly upward trend in use of such cards in the Indian market. During February, 2008 alone the use has gone up by 50% that is clear indicator of credit card usage on the increase in india. Every leading organization like the Citibank, Standard Chartered and American Express have all seen rise in the use of the electronic plastic card in India.
Consumers across the country are now spending around Rs.4000 per month using their credit cards. This is yet lower than the average Asian sub-continent rates. However, the gap is bridged steadily and a time will come up shortly when India may be at par with the other two most developed countries in Asia, Japan and China.
How the progress is coming up by leaps and bounds can be easily comprehended if you look at the figures three years ago when the average expenditure on credit cards amounted to only Rs.1500 in India. With the ever growing risk factors around the country with anti socials, burglars, pickpockets and such others, the popularity of the plastic card is growing immensely and people are now using it for both travel and purchase.
Traditional processes in Financial India has now changed to such extent that leading branded card companies like American Express has entered into contract with both Airtel and Kingfisher Airlines. Similarly the Citibank has entered contract with MTV and Jet Airways. The collaborations are making credit card use almost mandatory in many cases like buying a plane ticket on travel.