Trending:

Axis Bank to target rural, semi-urban markets for its credit card business; launches Samsung Axis Bank Credit Card

India is witnessing rapid growth in consumer spending and by 2026, it is expected that two out of every three transactions will be via digital modes of payments. I believe the real differentiation would come from being distinctive and developing exclusive customised products led by innovation, said Axis Bank MD and CEO Amitabh Chaudhry.

ET Now Digital

Updated Sep 27, 2022, 07:23 IST

Axis Bank

Photo : BCCL

New Delhi: The credit card industry in India has witnessed a compound annual growth rate (CAGR) of 20 per cent in the last five years. The number of credit cards crossed 78 million in July 2022. Taking the potential of the business into account, India’s third largest private lender Axis Bank is looking at capturing a lion’s share in the semi-urban and rural markets.

The income in India's semi-urban and rural markets has been on a constant rise which serves as a great opportunity for the banking industry looking to expand the country's credit card market. India is witnessing rapid growth in consumer spending and by 2026, it is expected that two out of every three transactions will be via digital modes of payments, said Axis Bank MD and CEO Amitabh Chaudhry.

"India is headed for interesting times, it is one of the fastest growing economies in the world and is well on the journey to becoming a $5 trillion dollar economy. Also, we have been seeing some rapid fundamental shifts, especially in the banking and financial industry like consumerism and disruption etc.”

“I believe the real differentiation would come from being distinctive and developing exclusive customised products led by innovation," Chaudhry said at the launch of the co-branded credit card with Samsung and payments solution provider Visa.

There have been numerous efforts from the central government and RBI to make India a digital economy, he noted. The RBI's announcement to launch a central bank digital currency and innovations such as UPI payments are steps in the same direction.

On price proposition, especially in the tier II and III kinds of markets, the bank officials said there is no dearth of capital among Indians. People have aspirations and they are willing to spend.

Axis Bank, which is the country's third largest private sector bank by asset size, is the fourth largest player in the credit cards business with over 17 per cent incremental market share in the last six months and 12 per cent at the end of the June quarter. India’s largest private lender HDFC Bank is currently the top player followed by SBI Card and ICICI Bank.

Samsung Axis Bank Credit Card

The card offers 10 per cent cashback on Samsung products and services around the year, in addition to several other benefits. The cashback will be offered over and above existing offers, on both EMI and non-EMI transactions.

Users will get 10 per cent cashback when they purchase products such as smartphones, tablets, laptops, televisions, refrigerators, ACs, washing machines, or Samsung services such as Service Center payments, Samsung Care+ mobile protection plans, and extended warranties.

Latest News