Credit cards, if used smartly, can help customers benefit from several rewards and improve their creditworthiness. In the past few years, several technologies have changed the way credit cards are used. Read on to learn about some credit card trends that you must watch out for in 2024.
Credit card trends that customers must know about in 2024
- Virtual credit cards will help banks offer higher security to customers: A virtual credit card does not have a physical form. These cards exist only in their virtual form, and they relieve customers from the hassle of having to carry their credit cards everywhere. These are available online, and they generally come with a transactional limit (similar to the credit limit fixed by credit cards). Cardholders can apply for a virtual credit card online and can also block their virtual cards instantly if they suspect any fraud.
- Credit cards will have more advanced security measures: Banks and credit card issuers are focusing on securing their customers’ sensitive information by adding more layers of security to their credit cards. Banks are employing biometric authentication as an extra layer of protection against unauthorised use. This trend is likely to strengthen in 2024.
- Card issuers will slowly adapt to eco-friendly credit cards: As the adverse effects of climate change manifest themselves in more ways than one, customers are looking to make more eco-friendly choices. Banks and card issuers are now switching to eco-friendly credit cards, and banks are looking to incentivise environmentally conscious spending through rewards. For example, a customer who shops at an eco-friendly store can benefit from higher rewards.
- BNPL services will be more widespread across India: “Buy Now Pay Later” is becoming an increasingly popular trend in India lately. Several credit card companies are now allowing customers to make a purchase first and then pay for it over a fixed period in fixed instalments. What’s more, these repayments are usually at zero interest!
- IoT will enable integrating one’s credit card with wearable devices: The Internet of Things (IoT) is going to completely change our interaction with credit cards. Banks are looking to leverage IoT technology to integrate credit cards with wearable devices like smartwatches. Individuals need not carry a physical card thanks to this technology.
- Credit card customer service will soon be supported by AI: The experience of customer services, too, is going to be revolutionised by technology. Artificial Intelligence-powered customer service teams are already helping banks deal with credit card-related issues. Chatbots and virtual assistants on the websites of banks are helping customers resolve their queries instantly.
- More card issuers will teach customers how to spend wisely through tools and resources: As more customers become curious about financial literacy and learn how to smartly spend money using their credit cards, banks are looking to reach out to more people to promote good practices. Through online tutorials, tools, and other pedagogical resources, financial institutions are looking to encourage good credit card practices such as paying one’s bills on time and checking one’s credit card statements.
- More credit cards will support contactless payments: Contactless payments have already become a reality around the world. They are made possible using NFC (Near Field Communication) technology, allowing customers to pay by tapping their credit card on a point-of-sale (POS) terminal. Especially since the COVID-19 pandemic, due to social distancing rules, governments around the world are encouraging digital payments. NFC-enabled credit cards are becoming popular in India too. Certain banks in India have already taken steps in this direction. IndusInd Bank’s Platinum Credit Card, for instance, helps customers make contactless payments.
In conclusion
Credit card companies are looking to make their credit cards more secure and eco-friendly. Banks are shifting towards virtual credit cards that help achieve both these objectives. Banks and financial institutions are also looking to inform their customers about the best ways of using their credit cards. In addition to these trends, customer services may rely more on AI and an increase in contactless payments through credit cards is expected. You can apply for a credit card online to benefit from a paperless documentation process and more attractive rewards.
