The Decline of Credit Card Rewards

The fintech sector has been buzzing after the Reserve Bank of India (RBI) permitted credit lines on UPI a few months ago. From what we know so far, banks are likely to gain the most out of it.

But a credit line-backed UPI product will also change how customers use credit. While they might continue to choose credit cards for high-value purchases, for smaller purchases like groceries and clothes, they could very well start looking at the new product.

The whole rewards system which had been helping issuers draw huge numbers of credit-card users, is going to change with it. In fact, it may even come to and end.

Tune in.

Recommendation

The Indian credit market is ripe for disruption again

Free airport lounge access helped sell more credit cards. Now its come to bite banks

Daybreak is produced from the newsroom of The Ken, India’s first subscriber-only business news platform. Subscribe for more exclusive, deeply-reported, and analytical business stories.