The market is a trendy place, something new keeps captivating people’s hearts. These changes in the market are continuous and trends keep changing. Now there are many impacts these changes have, such as in finance. Credit cards are not shielded from them as well. These shifts in market trends impact the credit card industry a lot. As the competition is tough in the market and even after having a huge variety of cards in the market, people prefer only a small number of them. The main reason would be the difference they show and the other would be the credit card rewards to match with the market trends and the consumer interest.
The rewards credit cards are the ones to grab the attention of new customers as they offer higher rewards in comparison to other cards. These are the main ingredient that determines the value of a credit card. Such rewards are sure to be implicated with modern trends as they need to be curated in the most possible way to present the best credit card in the market. Credit cards were not hugely accepted in the early 2000s but their popularity has increased so far, the change is there but it is still pretty rigid. To make credit cards more attractive, following modern trends has become very necessary, especially with the youth.
A New Era Of Credit Card Rewards
A lot of things have changed in the past decade, especially in India. Now, most of the things are digitalized, from shopping for clothes to groceries, people have seen changes not only in the market but with their personal needs as well.
The best example to explain the impacts of trends on credit card rewards would be the time of the pandemic. This was also the time when a lot of people lost their jobs, making credit cards an efficient way to be able to meet the daily needs of people. At the time of COVID, travel also came to a halt, decreasing the travel rewards desirability. People were not allowed to go out of their houses, showrooms, malls, and schools, everything was shut.
This shifted people’s focus from travel rewards and others to mainstream rewards, such as groceries or other daily things. Such rewards became more attractive to people as the future was very uncertain.
In today’s time, there are a few trends that are currently shaping the credit card industry at a quick pace. People should be aware of these trends and should consider them to implement adjustments to their judgment.
Trends Shaping the Credit Card Industry
There are nominally 3 big trends that are making quite a huge impact on the credit industry, which are mentioned below –
1. Increasing need for enhanced digital capabilities
The digital transformation of India was greatly accelerated during the pandemic. The transaction was processed overnight and used out of necessity. Quarantine shifted the online shopping experience rapidly, becoming a fourfold increase right from the start of the pandemic.
2. Changing reward environment
Rewards shifted towards everyday essentials such as with food delivery, streaming services, and groceries. Things to be consumed increasingly in larger portions in a month were focused more molding the credit card rewards according to the present need.
Cards focused on travel rewards, end up being reevaluated reward options for flexibility. Others also allowed the cardholders to use the travel points on other purchases, while some launched the card with cashback on a few spending categories.
3. Uncertain future credit environment
As inflation is already here, it is most likely to stay for a decent amount of time. Nevertheless, the prices have also skyrocketed making it tough for common people with an average income. Although inflation has a very minor impact on our country’s economy, we still need to prepare ourselves if anything goes wrong. Credit cards are one of the most effective financial tools when it comes to preparing for an uncertain future after our savings and other plans.
The competitive landscape remains, making decisions in favor of cardholders. The growth opportunities will remain abundant till the time there is competition in the market. Even if a person is fully satisfied with their current credit card, they will likely look for one or two more better options in the market.
The market is uncertain with its trends but they do impact the finances of any country pretty efficiently. Mostly people drift towards the trends out of necessity, some might also do it out of obligation. The major trends are shaping the credit card industry, making it easier for people and fulfill their needs. Change is necessary and so is the growth of the financial sector in this uncertain time.