– Travel credit cards surge with a remarkable 27% year-over-year growth, e-commerce cards follow at 24%, and fuel cards maintain a solid 17% increase.
– Meanwhile, New-To-Credit (NTC) consumers witness a substantial 19% rise throughout 2023.
Bengaluru/Delhi, January 9, 2024: India’s Tier-2 and 3 towns surge in credit card usage, with travel and e-commerce cards dominating. ZET’s consumer study reveals a 27% YOY rise in travel credit card demand, driven by aspirations for leisure and improved connectivity. Cash-back cards, notably SBI IRCTC, Axis Vistara, and IDFC Vistara, lead the pack.
Fuel credit cards witness a 17% YOY growth in 2023, gaining popularity in smaller cities. With benefits like cashback on fuel purchases, BPCL SBI, Indian Oil Kotak, and IDFC HPCL emerge as favorites. E-commerce cards, propelled by increased internet penetration, see a 24% YOY rise, with Tata Neu HDFC, Swiggy HDFC, and Axis Flipkart leading the trend.
Manish Shara, Co-Founder, and CEO of ZET, notes the low credit card penetration (5%) and predicts a surge to 10 crore owners by early 2024. The growth is attributed to urbanization, rising incomes, aspirations, and government support for digital transactions. Tier-2 and 3 cities are pivotal in shaping this credit card narrative, fostering financial inclusion in emerging markets.
The study highlights a 19% YOY growth in New-To-Credit consumers, with nearly 50% under 25. AU Small Finance Bank, SBI, and Axis Bank credit cards emerge as preferred choices for this dynamic consumer segment.
| Top-10 cities – Fuel | Top-10 cities – Travel | Top-10 cities – Ecommerce |
| Jaipur | Jaipur | Malappuram |
| Surat | Surat | Kozhikode |
| Indore | Chandigarh | Gurgaon |
| Malappuram | Indore | Thrissur |
| Gurgaon | Guntur | Indore |
| Vadodara | Gurgaon | Jaipur |
| Gautam Buddha Nagar | Gautam Buddha Nagar | Surat |
| Kozhikode | Bhopal | Kollam |
| Guntur | Vadodara | Kannur |
| Thiruvananthapuram | Lucknow | Thiruvananthapuram |
