INDIA

JUNE 2023 A
BANKBAZAAR
PRIMER

CREDIT CARD
REPORT

India Racing To
100 Million Cards

4 Large Banks,
71% Market Share

Average Spends
Hit New Highs

'Fuel, Co-Brand Cards

Seeing Highest Traction'
— BOB's Shailendra Singh
 a quick guide to
picking a credit card
Low Income? No Credit History?
Take a credit card against a fixed
deposit. Many banks offer this. The
terms and conditions vary from one
bank to another. The fixed deposit
required will be ₹10,000 or higher.
Your spending limit can be up to
100% of the deposit. Annual
charges may apply.
Recently Employed?
Go online to check your pre-
approved offers. Your bank may
have one basis your income. So will
websites such as BankBazaar.com.
The young prefer lifetime free
cards. Take one that helps you save
money and helps you access a
preferred lifestyle.
Seasoned Users?
Looking for an upgrade to an
existing card? Take a premium
card. Their annual fees pay for
themselves as gift cards and
premium experiences. Take a card
that helps you achieve the lifestyle
you aspire to, be it fine dining,
travel, or premium shopping.
Brand Mascots?
Are you loyal to a brand? Buy a co-
brand card issued in partnership
with your favourite brand. A co-
brand card makes it easier for you
to enjoy your favourite brands. For
your loyalty, you get accelerated
reward points, brand discounts,
and premium brand experiences.
PAGE 1 ASSURED RETURNS
COMING UP: A HUNDRED
MILLION CREDIT CARDS
India's changing how it pays—and
credit cards along with UPI are at the
heart of the change. This primer will
give readers an overview of this
change, the banks behind it, and where
we could expect to be in a few years.
Data from the Reserve Bank of India reveals that
in April 2023, we had over 8.6 crore credit cards in
play. This number has shot up by about 15% over
April 2022 when it was 7.5 crore. The growth was
slightly slower than the 20%+ we've had in recent
years. But we're nudging to the 100 million cards
outstanding mark, expected to arrive sometime in
or after 2023.
Credit-confident Indians are flipping out their
credit cards for big-ticket purchases, encouraged
by reward points, cashback, no-cost EMIs, and
premium lifestyle rewards. This reflects in the
steady growth of the average transactions. In April
2023, the industry average was ₹5120 per
transaction. The industry average monthly spend
per card was ₹15,388.
In April 2022, the industry average spend per card
was ₹14,070 and the average transaction was
₹4731. Similarly, the outstanding debt on credit
cards grew a whopping 30% from ₹1.54 lakh crore
to ₹2 lakh crore, April on April.
When it comes to big and mid-sized spends like
travel, electronics, dining, or shopping, people
love their cards for the rewards it gives them. But
on small transactions such as grocery spends, they
prefer UPI, which, too, has grown tremendously.
In April 2023, UPI moved over ₹14 lakh crore
over 886 crore transactions — averaging nearly
₹1600 per transaction. Last April, UPI had moved
₹9.8 lakh crore over 558 crore transactions.
This means the debit card is losing out. Though
we saw 4.6 crore debit cards being added to the
market taking the total to 96 crore, transactions
are falling hard. The debit card moved just under
₹55,000 crore (down 16%) over 23 crore
transactions (down 30%).
We'll see these trends strengthen. Credit cards
outstanding and average spends will go up. We
expect them to peak this fiscal during the Diwali
month of November. More young Indians will
buy their first credit card, and credit-wise
Indians will upgrade to premium cards.
© BANKBAZAAR.COM
PAGE 2 INDIA CREDIT CARD REPORT

INDIA'S CREDIT CARD MARKET

8.65 CRORE CARDS &
EACH BANK'S SHARE

ER
H
Others
O T S (15 banks under 500K)
25 ANK RE
B RO 1.7%
6C %
1.1 13.4 HDFC, 1.78 crore
YES BANK
20.4%BANK
HDFC
Bank1 4of. 5Baroda,
6 L A K H 19.45 lakh
1.6%
2.2% 1.78 CRORE
20.4%
IndusInd
I N D U SBank, 22.73
IND BA N K lakh
2 2 . 7 3 L2.6%
AKH
2.6%
RBL Bank, 45.23 lakh
5.2%

RBL BANK
Kotak Mahindra,
45.23 LAKH50.34 lakh
5.2% 5.7%
SBI, 1.68 crore
KOTAK MAHINDRA BANK 19.2%
50.34 LAKH
5.8%
SBI
Axis, 1.22 crore
AXIS BANK 1.68 CRORE
14%
1.22 CRORE 19.2%
14.1%
ICICI, 1.45 crore
ICICI BANK
16.6%
DATA: RESERVE BANK OF INDIA, ATM AND CARD STATISTICS 1.45 CRORE
16.6%

YEAR-ON-YEAR GROWTH
14.9c
15,00,00,000 12.4c
10.3c
10,00,00,000 7.51c 8.65c
4.79c 5.73c 6.22c
3.03c 3.77c
5,00,00,000

0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

*ASSUMING A 20% ANNUAL GROWTH RATE

© BANKBAZAAR.COM
PAGE 3 INDIA CREDIT CARD REPORT

INDIA'S CREDIT CARD MARKET

THE ONE CRORE CARDS CLUB:
4 BANKS, 71% MARKET SHARE
HDFC Bank
Cards outstanding: 1.78 crore
Total spend: ₹38,077 crore 1,045,240
Average transaction: ₹5951 NEW CARDS ADDED,
Average digital transaction: ₹8067 UP 6.2% Y-O-Y
Average monthly spend: ₹21,297

SBI
Cards outstanding: 1.68 crore
Total spend: ₹24,334 crore 2,910,376
Average transaction: ₹5275 NEW CARDS ADDED,
Average online spend: ₹8137 UP 20.8% Y-O-Y
Average monthly spend: ₹14,436

ICICI Bank
Cards outstanding: 1.45 crore
Total spend: ₹22,692 crore 1,448,745
Average transaction: ₹4545 NEW CARDS ADDED,
Average online spend: ₹5051 UP 11.0% Y-O-Y
Average monthly spend: ₹15,568

Axis Bank
Cards outstanding: 1.22 crore
Total spend: ₹15,646 crore 3,010,730
Average transaction: ₹3643 NEW CARDS ADDED,
Average digital spend: ₹4781 UP 32.51% Y-O-Y
Average monthly spend: ₹12,750
DATA: APRIL 2023, RESERVE BANK OF INDIA, ATM AND CARD STATISTICS
© BANKBAZAAR.COM
 PAGE 4 INDIA CREDIT CARD REPORT

MOVERS & SHAKERS

BANKS GROWING RAPIDLY
One of the major developments in the credit card
market has been the acquisition of Citi Bank's retail
assets by Axis Bank. Citi's credit cards have therefore
moved to Axis, which has seen a huge jump of over
30 lakh in its cards outstanding. Kotak Mahindra
Bank, too, has made giant strides.
The biggest risers are smaller private banks such as
South Indian Bank which recently ventured into
credit cards and are expanding their retail assets
rapidly. Among government banks, Bank of Baroda
has seen a 63% growth, while Bank of India, Bank of
Maharashtra, and Canara Bank have cut back.

Bank Cards In April 2023 Cards in April 2022 Change Change %

CSB Bank 10,354 0 +10,354 -

DBS India Bank 251,465 4,992 +246,473 4937.36

City Union Bank 6,793 1,790 +5,003 279.50

Federal Bank 592,915 170,251 +422,664 248.26

South Indian Bank 214,466 72,601 +141,865 195.40

AU Small Finance Bank Limited 541,696 189,930 +351,766 185.21

IDFC First Bank 1,570,245 856,394 +713,851 83.36

Bank of Baroda 1,945,379 1,194,104 +751,275 62.92

SBM Bank India 1,090,361 704,385 +385,976 54.80

Karur Vysya Bank 10,552 6,930 +3,622 52.27

Kotak Mahindra Bank 5,034,646 3,425,409 +1,609,237 46.98

Axis Bank* 12,271,981 9,261,251 +3,010,730 32.51

SCALING BACK
Bank Cards In April 2023 Cards in April 2022 Change Change %

Standard Chartered Bank 1,060,078 1,337,531 -277,453 -20.74

Canara Bank 624,494 917,871 -293,377 -31.96

Bank of India 77,006 165,625 -88,619 -53.51

Bank of Maharashtra 33,332 77,592 -44,260 -57.04

Citi Bank* 165,190 2,550,891 -2,385,701 -93.52

DCB Bank 0 3,715 -3,715 -100.00

Bank of America 0 21,588 -21,588 -100.00

* CITI'S RETAIL ASSETS HAVE BEEN ACQUIRED BY AXIS BANK. DATA: RESERVE BANK OF INDIA, ATM AND CARD STATISTICS

© BANKBAZAAR.COM
PAGE 5 INDIA CREDIT CARD REPORT

CARDS CONSUMERS LOVE

HOW MUCH DO WE
USE OUR CREDIT CARDS?
Monthly Transactions
Bank Total Cards Total Transactions
Per Card

CSB Bank 4.15 10,354 42,959

South Indian Bank 4.05 214,466 868,458

Federal Bank 3.97 592,915 2,355,039

Karur Vysya Bank 3.89 10,552 41,019

HDFC Bank 3.58 17,878,964 63,983,409

Axis Bank 3.50 12,271,981 42,947,120

Industry Average 3.01 86,512,698 260,004,349

CARDS WITH HIGHEST SPENDS

Bank Average Transaction Average Monthly
Bank
Spend Per Card
Citi Bank* ₹10,798
Karur Vysya Bank ₹29,141
IndusInd Bank ₹10,621
IndusInd Bank ₹27,773
American Express ₹8,448
American Express ₹27,319
Karur Vysya Bank ₹7,496
CSB Bank ₹26,696
AU Small Finance Bank ₹6,688
HDFC Bank ₹21,297
CSB Bank ₹6,434
South Indian Bank ₹19,794
Industry Average ₹5,120
Citi Bank* ₹19,770

* CITI'S RETAIL ASSETS HAVE BEEN ACQUIRED BY AXIS BANK. DATA: APRIL 2023, Industry Average ₹15,388
RESERVE BANK OF INDIA, ATM AND CARD STATISTICS

© BANKBAZAAR.COM
 PAGE 6 INDIA CREDIT CARD REPORT

DIGITAL REWARDS
CONSUMERS LOVE THESE CARDS
FOR ONLINE SPENDS
Percentage of Online Percentage of Online Average Online Average Monthly Online
Bank
Transactions From Total Spends From Total Transaction Spend Per Card

Citi Bank* 60.08% 78.21% ₹14,055 ₹15,462

American Express 73.51% 76.00% ₹8,735 ₹20,762

IndusInd Bank 38.78% 72.56% ₹19,874 ₹20,151

CSB Bank 46.64% 67.20% ₹9,269 ₹17,938

ICICI Bank 59.38% 65.99% ₹5,051 ₹10,273

HSBC 58.83% 63.80% ₹4,250 ₹6,602

South Indian Bank 46.01% 63.72% ₹6,770 ₹12,612

State Bank Of India 41.17% 63.50% ₹8,137 ₹9,167

HDFC Bank 46.59% 63.15% ₹8,067 ₹13,449

Federal Bank 47.78% 62.29% ₹5,602 ₹10,632

Industry Average 45.55% 60.95% ₹6,851 ₹9,379

* CITI'S RETAIL ASSETS HAVE BEEN ACQUIRED BY AXIS BANK. DATA: APRIL 2023, RESERVE BANK OF INDIA, ATM AND CARD STATISTICS

WHY CONSUMERS LOVE

DIGITAL CONVENIENCE
A credit card is versatile. You can use it pretty
much anywhere. It's convenient and rewarding.
You use them for big and mid-sized online spends.
You get accelerated points, deals, discounts, and
cashback. Now, there's a BNPL loaded on your
card with no-cost EMIs. With RuPay cards, you can
even make UPI payments. Credit cards are also the
way the young will continue to initiate and
strengthen their credit histories. With BankBazaar
co-brand credit cards, the journey from getting the
card to using it is entirely digital. It's why our
customers love them.

— ADHIL SHETTY, CEO, BANKBAZAAR.COM

© BANKBAZAAR.COM
 PAGE 7 INDIA CREDIT CARD REPORT
‘Fuel and co-brand credit cards
driving highest traction for BOB’
The CEO & MD of BOB
Financial, Shailendra Singh
in a chat with BankBazaar
talks about the factors
behind a year of tremendous
growth, TCS, and his
favourite credit card
BOB Financial had an excellent year with
credit card disbursals. You grew 62%
April-on-April. What’s driving your
growth?
Our tremendous year-on-year growth can be
attributed to a convergence of several factors,
all synchronizing in harmony. We have
harnessed a wide distribution network of our
parent brand, capitalizing on its extensive
reach across all the states in India. Moreover,
we have carved a comprehensive digital
journey that aligns perfectly with the modern
customer's preferences and requirements. Our
diverse range of products caters to a wide
array of needs, spanning from fuel, e-
commerce, utilities, MSME to armed forces all
accompanied by best in class offers. All of this
has been achieved within an agile technological
landscape, ensuring we stay ahead of the curve.
What do consumers love most about your
cards?
They value the trust and transparency
associated with the brand. Our product
offerings are not only competitive but also add
significant value, allowing customers to
actually benefit from their monthly spending
instead of just notional gains. This aspect plays
a crucial role in fostering customer loyalty.
Additionally, our credit cards are known for
easy-to-use and consumer friendly features.
Our cutting-edge mobile app enables users to
have an enriching experience that ensures
convenience and ease of managing their card
through the app. Our commitment to superior
customer service sets us apart, assuring
customer satisfaction and 24x7 assistance.
“
THE FORTHCOMING TCS RULES WILL
NECESSITATE BOTH TECHNICAL
ADVANCEMENTS AND OPERATIONAL
MEASURES.
Which categories of cards are seeing the
fastest pickup?
We have witnessed a higher traction for fuel-
based cards and co-branded cards for e-
commerce shopping. This is due to the
continuous value that these cards provide
throughout the customer's journey. These
cards provide benefits such as rewards and
cashback, fuel discounts, exclusive offers,
travel perks making them popular choices for
consumers.
Describe your ideal customer.
This versatility in catering to a diverse range
of customer personas is the greatest strength
of BOB Financial. We take pride in offering
tailored products to a wide range of customer
segments, from the urban-dwelling MNC
employees, to the underserved ‘Bharat Vasi’
running their own small businesses in rural
India. We offer products that fulfil the
aspirations of customers across the entire
spectrum. As a true harbinger of being the
Banker to every Indian, our ideal
(Continued on the next page)
© BANKBAZAAR.COM
 PAGE 8 INDIA CREDIT CARD REPORT
customers come in diverse forms, each with
their own unique needs and expectations.
Today's customers are more informed about
their preferences, how they want to be served,
and prioritize long-term loyalty over fleeting
financial advantages, these customers form
the essence of our ideal customer base.
What major credit card trends do you
foresee in 2023?
With COVID and its impact having receded,
there are some tell-tale signs in the credit
card trends that will sustain for a while. E-
commerce spends will far outpace the growth
in physical spends, and the plastic card as a
form factor will soon start morphing into a
“virtual card” accessible through mobile
applications on customers' phones. Another
transformative factor is the emergence of UPI
which is poised to revolutionize the payment
landscape by offering consumers the
advantages of both digital and physical
transactions. This innovation is not only
encouraging the usage of cards at smaller
establishments, but also enabling individuals
to manage their cash flow without straining
their finances. UPI transactions are user-
friendly for both senders and receivers, and
they offer the advantage of lower costs,
making it a game changer in the industry.
Digital spends are rising quickly. What
are the key digital-first offerings on
BOB cards?
Given that credit card spends are digital, i.e.,
cashless, our primary focus at BOB Financial
is to enhance the overall customer journey in
the digital realm. This starts with the
application process and onboarding, while
also offering attractive benefits and providing
exceptional customer service. The majority of
our new customers are acquired through
digital channels. We encourage online and
contactless spending through effective
customer communication and relevant
promotional offers. In line with our
commitment to self-service convenience, we
introduced a mobile app last year helping our
customers manage their credit cards on the
go. This advancement has significantly
expanded our range of self-service options.
Also, recently, we have enabled our RuPay
credit cards on UPI, allowing customers to
utilize their credit cards seamlessly without
the need to carry them physically.
What kind of pickup are you seeing with
RuPay-linked UPI payments?
Although it is still early days, we have seen
remarkable growth in UPI-based payments
through credit cards. Initially, there were
concerns about potential competition and
cannibalization between these payment
protocols. However, early trends indicate the
possibility of a symbiotic relationship
between the cards and UPI. We have seen
interest among users in trying new credit card
apps that integrate UPI functionality. Over
time, the familiarity with ‘credit cards’ and
‘buy now pay later’ options will increase. UPI
payments have already accounted for a
significant share of the overall card payment
landscape, which led us to double-digits.
What complexities are you seeing with
TCS on credit card transactions? How
are you operationalising TCS collection?
The industry is currently engaged in active
discussions regarding the proposed rules
aimed at ensuring accurate interpretation. It
is evident that the forthcoming rules will
necessitate both technical advancements and
operational measures. Additionally, effective
customer communication will play a vital role
in minimizing any disruptions to
international spending. As an independent
credit card issuer, separate from a bank, we
will need to implement additional measures to
facilitate TCS collection and monitoring.
What’s your personal favourite credit
card?
Out of all the credit cards available, my
preferred choice remains BOB Eterna. It is an
exceptionally robust product that offers a host
of benefits including accelerated reward
points on all relevant use cases like e-
commerce, dining, travel among others.
Considering my frequent business trips to
different regions, the unlimited access across
all domestic airport lounges provided by this
card proves invaluable in effectively
managing my travel itineraries.
Parting thoughts?
Customers are wholeheartedly embracing
digital payment methods. At BOB Financial,
we are constantly improving our digital
onboarding experience, ensuring a smooth
and hassle-free application process for our
credit cards. Once onboarded, our customers
have access to more than 100 offers at any
given time, across EMI and regular spends. We
have also enabled all our RuPay credit cards
for UPI, that will help customers use their
RuPay credit card at many more acceptance
points, especially smaller merchants, without
actually carrying their RuPay credit card.█
© BANKBAZAAR.COM
how to use your card
smartly safely
Avoid Minimum Payments
Pay your card dues in full. Rolling
over your dues attracts interest,
often at the rate of 40% a year.
Never Be Late
A single late credit card payment
can bring your credit score down
by a 100 points.
Keep Your Utilisation Low
Stay at 30% of your spending limit.
Go over it when you're confident
of full and timely repayment.
Know Your T&Cs
Know the fees, penalties, and
terms and conditions of your card.
Never be taken by surprise.
Protect Your Details
Safeguard sensitive credit card
data such as card number, expiry
date, CVV, and passwords.
Secure Your Card
Keep it physically safe. Never
leave it unattended. If your card is
lost, report to the issuer ASAP.
Monitor Your Statements
Regularly review your credit card
statements for any unauthorized
transactions.
Beware Of Phishing
Beware of suspicious emails or
calls asking for sensitive financial
information.
Author & Researcher
AR Hemant
AVP, Communications
arhemant@bankbazaar.com
Editor
Nanda Padmanabhan
AGM, Corporate Communications
nandap@bankbazaar.com
Copy Editor
Malvika Singhal
Assistant Manager, Communications
malvika.singhal@bankbazaar.com
About Us
BankBazaar.com is India’s largest fintech co-
branded credit card issuer and online platform
for free credit score. It has a base of 56 million
registered users who use the platform for free
credit score tracking and in-depth personal
finance content and comparison tools.
Its range of co-branded credit cards with India’s
leading banks is driving the platform's rapid
growth with more than half its customers now
opting for BankBazaar's own co-branded
products. The company is on track to facilitate
one million active BankBazaar co-branded credit
© 2022 A & A Dukaan Financial Services Pvt. Ltd.
All rights reserved.
cards in force over the next couple of years.
Supported by global investors such as Experian,
Eight Roads, Sequoia India, WSV, and Amazon,
BankBazaar has been at the forefront of
democratising finance by providing Indians with
frictionless access to credit.
The company exited FY2022 with a revenue
₹160 crore, growing 60% year-on-year with
EBITDA profitability on a monthly basis
attributed to its co-brand model.
Adhil Shetty, CEO, BankBazaar.com, said:
“BankBazaar has been focussed on three things:
great technology, customer focus, and the
bottom-line. I am proud to say that we are one of
the few fintechs in the world to be growing
rapidly and profitably.
BankBazaar is well positioned to accelerate this
revenue growth rate further in FY24 while
targeting full year EBITDA profitability. This
strategy for profitable and sustainable growth
has been in the works for over three years. We’ve
built a co-branded portfolio of digital products
with proven customer traction, which has
created sustainable revenue while improving
margins."