Premium category credit cards have witnessed 100% growth on a YoY basis and industry sources have told us that they expect it to grow 50% this year against the regular credit cards growth of 25-30%.
So what are Premium Credit Cards ?
These are the cards which are loaded with lots of benefits to attract High Networth Individuals. They have very high credit limits as well as insurance cover, lounge access, higher reward points, discounts at hotels and airlines etc.
These cards account for less than 5% of the total credit cards issued in India. However, the spend and income generation from such cards is more than 10%. The rate of defaults is also much lower on these cards and customers don’t mind paying some credit card fees on the same.
With the increasing purchasing power of Indian consumer, Credit Cards have unlimited potential for growth in India.