Travel credit cards surge with a remarkable 27% year-over-year growth

– Travel credit cards surge with a remarkable 27% year-over-year growth, e-commerce cards follow at 24%, and fuel cards maintain a solid 17% increase.
– Meanwhile, New-To-Credit (NTC) consumers witness a substantial 19% rise throughout 2023.

Bengaluru/Delhi, January 9, 2024: India’s Tier-2 and 3 towns surge in credit card usage, with travel and e-commerce cards dominating. ZET’s consumer study reveals a 27% YOY rise in travel credit card demand, driven by aspirations for leisure and improved connectivity. Cash-back cards, notably SBI IRCTC, Axis Vistara, and IDFC Vistara, lead the pack.

Fuel credit cards witness a 17% YOY growth in 2023, gaining popularity in smaller cities. With benefits like cashback on fuel purchases, BPCL SBI, Indian Oil Kotak, and IDFC HPCL emerge as favorites. E-commerce cards, propelled by increased internet penetration, see a 24% YOY rise, with Tata Neu HDFC, Swiggy HDFC, and Axis Flipkart leading the trend.

Manish Shara, Co-Founder, and CEO of ZET, notes the low credit card penetration (5%) and predicts a surge to 10 crore owners by early 2024. The growth is attributed to urbanization, rising incomes, aspirations, and government support for digital transactions. Tier-2 and 3 cities are pivotal in shaping this credit card narrative, fostering financial inclusion in emerging markets.

The study highlights a 19% YOY growth in New-To-Credit consumers, with nearly 50% under 25. AU Small Finance Bank, SBI, and Axis Bank credit cards emerge as preferred choices for this dynamic consumer segment.

Top-10 cities – FuelTop-10 cities – TravelTop-10 cities – Ecommerce
Jaipur JaipurMalappuram 
Surat Surat Kozhikode 
Indore Chandigarh Gurgaon
Malappuram Indore Thrissur
Gurgaon Guntur Indore
Vadodara Gurgaon Jaipur
Gautam Buddha Nagar Gautam Buddha Nagar Surat 
Kozhikode Bhopal Kollam 
Guntur VadodaraKannur 
ThiruvananthapuramLucknowThiruvananthapuram