Jul 14,2022 | Financial
Credit card is one of the earliest modes of cashless transactions that allow cardholders to borrow funds to pay for goods and services from merchants that accept card payments. Employers provide commercial credit cards to employees so that they can make purchases on their company's behalf. They're frequently co-branded with other organizations such as building supply stores and gas providers.
Employees who are asked to buy products for their employers with their own money may be irritated by having to wait days or weeks for reimbursement. Sometime, employees submit false reimbursement forms, claiming that personal purchases were made on the company’s behalf. Finally, filling out reimbursement documents takes time, which may deter people from using credit cards. Hence, corporate credit cards make it easier to keep track the money employees spend on company business.
The total value of credit card transactions is expected to reach INR 51.72 Trillion by FY 2027, expanding at a CAGR of 39.22% during the FY 2022 – FY 2027 period. The volume of credit card transactions is projected to expand at a CAGR of ~26.43% during the forecast period. In FY 2021, a significant increase in the value of credit card transactions was witnessed. This rise was the result of a surge in the number of transactions per credit card and cardholders. The banking system reported over 1.2 million new credit card additions in November 2021.
Branded under the business services category, the exclusive research report on the Commercial Credit Cards Market in India provides top-line qualitative and quantitative summary information including market size value and forecast. The profile also contains descriptions of the leading players including key financial metrics and analysis of competitive pressures within the market.
In the wake of the pandemic, the National Payments Corporation of India (NPCI) encouraged customers and providers of emergency services to adopt digital payment systems, to promote contactless transactions. As a result, transactions increased to extent. However, a drop in international travel due to restrictions imposed during the 2020 – 2021 period adversely impacted credit card use during that time. Revenue levers are likely to be hard to pull because customers are not keen on using credit cards frequently. Issuers need to adopt cost management strategies to attract customers and attain a competitive and robust future for the credit card market.
SBI Air India Signature Credit Card, AMEX Platinum Travel Credit Card, HDFC Diners Club Black, and CitiBank Corporate Credit Card are some of the major commercial credit cards provided by commercial banks in India.
To get more insights on the topic, please refer to Commercial Credit Cards Market in India.