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Tag: credit card

  • Payment Cards In India: Carry The Bank In Your Pocket

    Money is one of the most, if not the most important thing in human life. If one wants to survive and live a comfortable life in this world, money is the answer. Without money, nothing is possible.

    Technology has been introduced in this world to make our life effortless and to be honest, it’s doing the job, quite well. In a time where we live, having those big pink and green notes with us is a necessity but carrying them all time is a headache.

    Imagine bringing a bundle of cash just for some mere shopping, sounds risky and uncomfortable, right? Of course, another option like a cheque is also there but somehow it seems overdone.

    Thanks to technology, now we have the access to get money directly from the bank anytime and anywhere. How? Well, the answer is the thin payment card also known as plastic money. Nowadays, payment cards are the go-to option for any kind of transaction.

    The dynamic nature of these cards leads to easy and safe transactions. Now, one can just shop whatever they want by just having a card that can fit in the pocket of their jeans. It is definitely better than carrying a huge stack of money, which is not that safe and bothersome in addition. Credible ways for the online transactions as well, payment cards have now become a significant form of payment system in the world.

    “We’re talking about payments, customers care about shopping.”

    -Ranjit Sarai

    How Payment Cards Are Operated In India?
    Top Payment Cards that are used In India
    FAQ

    How Payment Cards Are Operated In India?

    By just having a card, credit, or debit, life becomes much more easier. Whoever has a bank account, that person is eligible to have a payment card. Although there are some rules that one needs to follow properly, to attain a credit or a debit card.

    Credit Card

    To be simple, with the help of a credit card, a person can purchase anything and can pay for that at a later time. Basically, it means one can just borrow money directly from the bank.

    • One needs to attain the age of 18 to get a credit card.
    • Every Credit Card has a limit, one cannot exceed that limit.
    • If by any chance the borrowed amount is not paid fully, then the remaining amount in the card will be charged with interest.
    • If a person cannot pay the full amount by the time limit, there is an option of EMI, where one can just pay a minimum amount for a time period.

    Debit card/ATM Card

    • With the help of this card, one can withdraw money from the bank directly. It is derived from the deposited amount of the bank account.
    • One needs to be 18 to have a debit card. Although minors can also attain debit cards if they had their guardian open the bank on their behalf.
    • Every use of the card deducts the deposited amount from the savings account immediately.
    • Through an ATM that is open 24/7, one can withdraw cash, if they have a debit/ATM card.

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    Top Payment Cards that are used In India

    The top payment card service system that rules the Indian financial service market are:

    • RuPay
    • VISA
    • Mastercard

    RuPay

    2012 was one of the prominent years for Indian financial industry. As RuPay, India’s first multinational financial service and payment service system was started by the National Payments Corporation of India(NPCI). The name RuPay is obtained from two words Rupee and Payment. It is the first Indian card payment system.

    RuPay cards are specially made for Indian Citizens. As of now, 1100 banks in India issue RuPay cards. It is internationally accepted in Singapore, South Korea, UAE, Saudi Arabia, Australia, Myanmar, Maldives, Bhutan and Bahrain.

    Some of the special features of RuPay Card are:

    • The transaction cost is lower, as it will happen internally, so no additional cost.
    • All the transaction data of the consumers will remain in the country.
    • No separate registration is required.
    • RuPay Debit cards provide some exciting offers, including cashbacks.

    VISA

    This American multinational financial services organization started its journey in the year 1958 and was launched by Bank of America. It was first known as BankAmericard but later in 1976, it was renamed Visa. It is also the largest card payment organization in the world. With its spectacular tactic, it has captured 50% of the card payment market of the world. It is also considered one of the most valuable companies in the world.

    Some of its attractive features are:

    • It is globally accepted.
    • Visa is used in over 200 countries.
    • There are various good Credit card offers provided by VISA.
    • It provides better rental car insurance.

    Mastercard

    Mastercard is also an American multinational financial service and more than 25,000 financial institutions issues Mastercard debit and credit card. Mastercard was first introduced in 1966 and at first, it was known as Interbank. It is considered the second largest, right after Visa, card payment organization in India.

    Some of the special characteristics of Mastercard are:

    • Mastercard is accepted almost all over the world.
    • With just a simple phone call, your card can be canceled.
    • The cost protection service of Mastercard is way better than other cards.
    • It is free from any kind of unauthorized charges. Basically, it provides Zero  Liability Protection.

    As per the order of Reserve Bank of India (RBI), Mastercard has stopped issuing any new debit or credit cards in India. RBI banned the financial service giant for not complying with the data storage rules it was asked to be followed.

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    Conclusion

    With time and technological advancement, it is only fair that payment card has started replacing the big stack of notes. It is convenient and easier to use. Apart from that, it is comparatively safer as well. That small thin card holds a huge level of importance in our life now.

    FAQ

    Is RuPay Card Indian?

    Yes, RuPay is an Indian Multinational financial services and payment service system.

    What is the most Common Plastic Money?

    Debit card is the most common form of plastic money.

    What Are the Types of Payment Cards in India?

    Debit cards, Credit cards, prepaid cards, and Electronic cards are mostly used in India for payments.

  • Top 5 Companies leading Debit Cards Market in India 2021

    We live in a world where technology has given us an option to carry a thin card instead of huge stacks of paper in a form of money.  Now, we don’t have to carry large sums of money, with risk and in an uncomfortable way. A debit card is a form of a payment card, which can be used for making any kind of purchase and is accepted instead of money. It deducts the amount that you spend while buying anything, directly from your bank account.

    There are many reasons why debit cards are considered more convenient than cash. India has now accustomed to using cards instead of cash. They are safe and convenient to carry.

    Transactions are comparatively faster and are accepted all over the country. It also makes the online transaction easier and the best thing, it doesn’t let you overspend. Therefore, it is safe to say that a Debit card is one of the most popular and appropriate forms of cashless transaction.

    “I’ve always been pretty careful at keeping track of my spending, so using my debit card is often the easiest way of doing that.”

    -Andy Murray

    In the following article, we’ll discuss the features provided by the top banks on debit cards.

    In India, there are several banks that dominate the debit card market. Let’s find about them:

    State Bank of India (SBI)
    HDFC Bank
    Axis Bank
    ICICI Bank
    Kotak Mahindra Bank
    FAQ

    State Bank of India (SBI)

    Termed as the 43rd largest in the world and largest in India, SBI is a multinational public sector bank whose headquarters is situated in Mumbai, India. This financial services company is providing the country’s citizens with its facility since 1955. It is being a big factor in the debit card market of India by holding 33% of the market share.

    Some of the unique features that it provides with its debit cards are:

    • It provides cardholders with high cash withdrawal limits on selected cards.
    • 3D online security service is provided by the bank to have secured transactions.
    • Many exciting offers for shopping from E-Commerce site- Amazon.

    HDFC Bank

    Founded in 1994 by Hasmukhbhai Parekh and Sashidhar Jagdishan, this financial service company is India’s largest private sector bank in the market. The headquarters is situated in Mumbai, India. HDFC holds 4% of the debit card market share in India. It is the subsidiary of Housing Development Finance Corporation.

    HDFC offers some good features to its debit cardholders and they are:

    • It provides customers with a high online payment limit.
    • Numerous website offers exciting amount of cashback and discount if transactions are made by HDFC debit cards.
    • You can set a limit on your card for shopping, so to avoid overspending.
    • HDFC provides EMI offers while buying anything using debit cards.
    • Premium debit cards provide free health insurance coverage.

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    Axis Bank

    This third largest private sector bank in India is serving people since 1993. It holds 3% of the debit card market share in India and the headquarters is situated in Mumbai, India. It changed its name from UTI bank to Axis bank in 2007.

    Some exclusive features provided by Axis Bank to its debit cardholders are:

    • You can print your customized design for your debit card.
    • The bank provides an option to earn reward points, after domestic and international purchases.
    • Up to 20% discounts are available if you dine out in a restaurant that has partnered with Axis bank.
    • Getting vouchers and gifts after expending and making some minimum purchases.

    ICICI Bank

    This bank was established in 1994 and is a subsidiary of Industrial Credit and Investment Corporation of India, which was formed in 1955. It has 5255 branches all over India and is present in 17 countries. Moreover, it is famous for being the first Indian bank for listing itself on New York Stock Exchange. It holds 4% of the debit card market share in India.

    The debit cardholders of ICICI bank enjoy some special features, and they are:

    • Some of the cards offer a good percentage of discounts on hotels.
    • Shopping vouchers are provided for purchasing from numerous E-Commerce websites.
    • Minimum 15% of discounts are offered to the customers for dining in the partnered restaurant.

    Kotak Mahindra Bank

    The third-largest private sector bank was founded in the year 2003 by Uday Kotak. The headquarters is situated in Mumbai, India again. It has over 1600 branches in India. It holds 2% of the debit card market share in India. This bank is popular for its great customer service.

    ICICI provides some exclusive features to the debit cardholders and they are:

    • It provides an unlimited number of withdrawals for its Gold Privilege savings account customers.
    • Day-to-day expenses of the customer made by the card can be traced by them.
    • Premium cards give them the benefits of insurance on Air Accidents.

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    Top Banks that provide Debit Card Services in India

    According to reports, as of now, there are 850 million debit cards are active in India. With a population of over 1.3 billion people, this is not something strange. Some of those banks are:

    • SBI
    • Bank of Baroda
    • HDFC Bank
    • Union Bank
    • Axis Bank
    • ICICI Bank
    • IDBI Bank
    • Bank of India
    • Kotak Mahindra Bank

    Conclusion

    The Indian payment structure saw an evolution since the introduction of payment cards. These cards play a very significant role in our day to day lives, it makes life easier and has made regular transaction safer and convenient. India is a country where the most number of debit cards is in use. The users are increasing day by day, with the motive of making transactions cashless.

    FAQ

    How many Types of Debit Cards are there in India?

    There are six different types of debit cards present in India.

    Who makes Debit Cards in India?

    National Payment Corporation of India (NPCI) makes the debit for which the banks pay the fee to them.

    How many People in India have Debit Cards in India?

    As of 2020, 860 million debit cards are active in India.

  • Top 7 Interesting Facts about Cred you should know about

    The timeline of the credit users has been burgeoned in recent times with this ongoing evolving digital India, as people rely more on credit cards that play a beneficiary role towards them. Credit cards bestow much assistance to encounter the financial facilities or requirements of the holder such as rent, taxes or any other credit purchases.

    India has flourished in the field of credit facility that developed an India-based company CRED which authorizes users to pay off their expenses via an app. CRED is member-only credit management that allows the members who are eligible for credit accessing up to 750. CRED has been expanding its financial services in the past two years and becoming credible credit management in India.

    Therefore, CRED is an Indian FinTech startup that is fabricated to progress credit facilities by building a digital club of credit scores for its only-users.

    About CRED

    CRED was founded by Kunal Shah in 2018, a Bangalore-based financial market, which is designed to provide digital financial services to the people. Furthermore, the company has realised the need for digital demand, especially when the entire world is struggling during this ongoing pandemic.

    Consequently, Kunal Shah built a credit service to people through an app, which processes their remittance. The company has become a renowned financial service that partnered with over 38 brands and sponsored PL for three consecutive years.

    Let’s look at Top 7 unknown facts about CRED.

    CRED was Created by the former founder of FreeCharge
    CRED has Two prominent objectives
    CRED is a member-only Community
    CRED is one of its kind app in India
    CRED Struck a Three-year deal with IPL
    CRED offered Five Products
    CRED bolstered the people in the ongoing pandemic
    FAQ

    CRED was Created by the former founder of FreeCharge

    Kunal Shah is a serial entrepreneur who has formed CRED and is also the former founder of FreeCharge which was later sold to Snapdeal. The story of CRED commenced, when Kunal sold off his first venture in 2015, and began to spend that money like a dilettante and underscoring utilised some on the study of developing his new idea, and that is ‘Cred’.

    Prominently, people don’t situate their trust in financial institutions, so Kunal Shah created a frictional environment that engenders financial progress for the people which is considered to be reliable and trustworthy. In 2018, he inaugurated CRED along with key investors DST Global, Sequoia Capital, Ribbit Capital and Tiger Global.

    At the time of launching the CRED App over 1000 downloads were done with 4.6 ratings on the Google Play Store and App Store.

    CRED has Two prominent objectives

    CRED was formed with two primary objectives- to enhance life for creditworthy individuals and to actuate credit services to people to dilate the financial behaviour in the country.

    As of now,  CRED has boarded nearly 5.9 million users and functions around 20 per cent of credit payments in India. CRED is a community, where its member-only can avail themselves of the rewards for paying off their credit bills in full settlement.

    The company holds charges if the holder pays extra rupees on the full-settled credit payments. Up until now, CRED has raised funds overall around 227 million.

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    CRED is a member-only Community

    Every financial institution provides credit service, only if the holder goes with the eligibility criteria. The credit score should be more than 750, so you can be a member of the CRED community and redeem the rewards.

    CRED is one of its kind app in India

    This is the only app in India, which allows you to redeem for paying off your credit card bills. CRED has given various options to redeem your rewards- making a 1000 rupees transaction, you can ‘burn CRED coins’ to win Rupees worth 5 to 10 rupees that add to your credit card.

    On the other hand, ‘Kill the Bill’ you can just swipe the card to access offers from Swiggy, Yatra, BookMyShow, Freshmenu, Uber Eats and other fashion portals.

    CRED Struck a Three-year deal with IPL

    Every person watching an IPL match would understand the angst of having to go through the entire match watching multiple ads or having to watch the same ad multiple times. But the IPL seasons of 2020 and 2021 had some ads that caught the attention of the public.

    Yes, I am talking about the Indira Nagar Ka Gunda ad and the Madhuri Dixit and 90s stars ads from CRED.

    CRED Sponsor during a Ipl match
    CRED Sponsor during an Ipl match

    CRED has struck a three-year deal from 2020 – 2022 as a sponsor for the IPL. And the IPL Campaign has increased the daily sign-ups for CRED Membership by 6-7x in 2020. Payment of credit card bills during the powerplay offers a chance to win 100% cashback and was also well received.

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    CRED offered Five Products

    CRED offers five distinct products to its members. The services include:

    CRED RentPay

    A feature that allows tenants to pay the monthly rent to the landlord’s bank account directly using a credit card.

    CRED Cash

    A system that gives credit for interest that is one-third of the credit and it is fast and fully digitalised;

    CRED Pay

    A safe payment option and can be used as a single-click alternative in selected merchant platforms and offers discounts on brands like Bombay Shaving Co., Dine out etc.

    CRED Store

    The CRED app houses 1500+ brands in their in-app e-commerce and travel destinations domestic and international from which its members can purchase at a member-exclusive price.

    CRED Travel Store

    The travel store gives the members an option to buy now and travel later to exclusive places and CRED’s association with Mastercard provides premium packages at top hotels like The Taj.

    CRED bolstered the people in the ongoing pandemic

    During the second wave of the ongoing Corona pandemic, the need for oxygen supply was a major concern in India. CRED came out to help with the situation by partnering with NGOs like Milaap, Hemkunt Foundation and Give India.

    It gave its members an option to donate their CRED coins towards oxygen concentrators for COVID patients. In a later post, CRED revealed that more than 7.5 lakh members contributed their CRED coins and the donation to the cause was Rs. 10 Crore.

    Conclusion:

    CRED’s growth and popularity can be attributed to two facts. Firstly, the startup founder Kunal Shah who has seen success in his other startups and investors trust his ability in making a success of any venture he starts.

    Secondly, the astonishing fact that CRED’s revenue in FY20 was not more than INR 50 lakh but the estimated revenue projection for FY21 is INR 108 Crores which is 208 times the growth. Thus making another fact clear that CRED is another successful startup of Kunal Shah.

    FAQs

    What is CRED?

    CRED is a members-only credit card bill payment app founded by Kunal Shah in 2018 and is headquartered in Bangalore, Karnataka.

    How does CRED work?

    CRED allows its members to make payments using the app. The app’s focus is to make use of credit card payments easier, automated, and making payments early. Payments made using the CRED app allow the members to earn CRED coins.

    What is the eligibility to join the CRED community?

    CRED accepts only those credit card holders who maintain a credit score above 750. The credit score is checked using the number connected to the bank account and those who do not pass the criteria are shortlisted.

  • Why did RBI restricted American Express, Diners Club from adding more customers

    On 23 April 2021, the Reserve Bank of India had barred American Express and Diners Club International Limited from onboarding new customers to their platform. The ban is expected to come into effect from May 1. Let’s look at why both the payment system operators American Express and Diners Club International Limited were banned by RBI from adding new customers.

    About the RBI Ban
    American Express Banking Corp
    Diners Club International Ltd
    Why did RBI restricted American Express, Diners Club from adding more customers
    FAQ

    About the RBI Ban

    The Reserve Bank of India had initiated a ban for the payment system operators from onboarding new customers into their network as they were not able to follow the norms with the data storage put forth by the RBI.

    The Reserve Bank of India in a statement said that both the entities have been found to be non-compliant in respect to the directions on storage of data of the payment systems. The RBI has added that the action towards both the entities was taken based on the powers which are under Section 17 of the PSS Act.

    American Express Banking Corp and Diners Club International Ltd are payment system operators in the country who has the authorization to operate card networks in India under PSS Act (Payment and Settlement Systems Act), 2007.

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    American Express Banking Corp

    American Express Banking Corp is a multinational company that focuses on financial services. It is located in New York, the United States. The company was founded in the year 1850. American Express is considered to be the 23rd most valuable brand in the world according to the Forbes 2017 list.

    Some of the products offered by the company are Charge Cards, Traveler’s cheque, Credit Cards, corporate banking, etc. In India according to a report by Financial Express, American Express has a market share of around 2.53 % of the total market with around 15.6 lakh credit cards outstanding.

    Diners Club International Ltd

    Diners Club International is also known as DCI is a charge card company. It is a finance-based company that has its headquarters in the United States. The company was founded in the year 1950. Diner Club International was the first payment card company in the world.

    The company is owned by Discover Financial Services. Some of the products of Diner Club International are charge cards and credit cards. In India, Diners Club International distributes its cards exclusively through HDFC Bank and the exact number of active users is unknown.

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    Why did RBI restricted American Express, Diners Club from adding more customers

    In the year 2018, in a notification, the Reserve Bank of India had noticed that all the payment system providers did not stored the data of the payments in the country. The notification said that there was a significant growth witnessed by India in the payment ecosystem and such systems depend completely on technology.

    The notification added that such an ecosystem has a necessity for a continuous measure of safety and security that were best in class.

    The Reserve Bank of India had then directed all the system providers to ensure that the entire data which are related to payment systems should be stored in a system that is only in India.

    The data which are stored should include the full end-to-end transaction details, information, carried, collected, and processed as part of the message or payment instruction. This was mentioned by RBI in its notification.

    If there is any foreign transaction, those data can be stored in the foreign country if it is required. The compliances with the new rules were supposed to be followed by the system providers within 6 months and they had to report the same to the Reserve Bank of India.

    In addition to this, they were also required to submit a report which should be approved by the board a System Audit Report (SAR). It should be conducted by the CERT-In empanelled auditor within the time duration that is specified.

    The ban of American Express Banking Corp and Diners Club International Ltd by RBI is because they have failed to follow the statement given by RBI in regards to storing the data which was issued two years ago.

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    FAQ

    What does American Express do in India?

    In India, American Express offers a full range of travel, financial and network service products.

    What type of credit card is Diners Club?

    Diners Club is an International Credit Card.

    Who owns RBI?

    RBI has been fully owned by the Government of India since its nationalisation in 1949.

    Conclusion

    The ban on both the entities would not affect the existing customers. The Reserve Bank of India had clarified in a statement that the ban will have no impact on the customers of both the companies.