I am sure the word credit card is very common and everybody, whosoever is not even using might be knowing what a credit card is. But the word Interactive credit card and that too with LED lights, would surely be new for the people even those who have been using credit for a long time. This is a new concept which was introduced first by Indusind Bank and if it goes successful, I am sure a lot of companies would follow this. This card is known as Nexxt Credit Card of Indusind Bank and it comes with 3 buttons and LED light on the card. This is an interactive credit card where you have an option of 3 buttons ie. EMI pay, pay with rewards or pay with credit. So, before you make the payment you can select whichever option you want to go with and then make your payment. The customer does not need to fill any paperwork or call their bank, or log into any banking channel to convert their POS transactions into EMI’s or to redeem their reward points. Just by the click of the button on the card and the process would start. The LED lights enabled on the card will ask the customer to select the option of EMI to be converted into 6, 12, 18 or 24 months. This card comes with a lot of safety and security as well. Let me just share with you the growth of credit cards in the country. *Credit cards in circulation touched 48.9 million in May, 2019 from 38.6 million in the same period last year. The 27% growth has thrown up new business opportunities, say payment industry executives. The proportion of credit card originations among millennials (persons below 30 years of age) has increased over the last four years to 35.0% in FY19 from 19.0% in FY15. Faster adaptability of technology by a younger generation and a change in consumer mindset has boosted credit cards penetration. The last five years have witnessed increasing acceptance of digital payments by Indian consumers and the rise of e-commerce businesses, which has given a huge stimulus to credit card usage. The increased use of cards for purposes such as travel, shopping, lifestyle purchases, entertainment, healthcare, utility bill payments, etc., have increased the spend per card.

Author:
Dr. Sunil Patel, Professor, Unitedworld School of Business (UWSB)

Disclaimer: The opinions / views expressed in this article are solely of the author in his / her individual capacity. They do not purport to reflect the opinions and/or views of the College and/or University or its members.