7 Reasons Why Online Credit Card Services Are Popular in India

Online Credit Card

Online credit card issuers have forever changed the way people access and utilise this tool. As of January 2024, the number of active credit card users in India has gone up to 10 Crores. These credit cards are now a crucial part of any financial toolkit and even play a part in improving how you shop. 

This rise in the credit card user base can be due to the convenience offered by this financial instrument and its easy access. You can easily apply for a credit card online through the issuer’s website, mobile application, or via aggregator websites. 

Here are some reasons for the growth of online credit card services in India. 

Instant Pre-Approved Credit

Since the pandemic, most people understand the need to have alternative sources of funds in case of emergency. This includes a credit card that gives you instant credit according to your financial capacity. 

If you have a credit card, you can easily manage your cash flow for your daily financial requirements. This makes it more reliable than other options, such as a personal or business loan. This is also beneficial for businesses, freelancers, and self-employed individuals as they can arrange for quick funds as required and pay them back easily. 

Unified Payments Interface (UPI)

Online shopping, food delivery, grocery shopping, etc., make your lives convenient by delivering the required product to your doorstep. So, it is not surprising that 75% of credit card transactions are through online platforms. This is further made convenient through UPI, which provides additional security. 

Similarly, most people apply for a credit card online, eliminating the need to visit the issuer’s office or make calls to apply. Moreover, you can now add certain credit cards to your UPI apps, and this is contributing to the rise. 

EMI Facility

Another reason people opt for a credit card as a payment method is that it increases their purchasing power. This is because most credit cards allow you to convert purchases into affordable EMIs. 

With this option, you can easily pay the price of your product in multiple instalments by choosing a comfortable tenure within your budget. Some issuers may charge fixed credit card interest rates for it. However, no-cost EMIs are gaining popularity, meaning there will be no interest in the facility. This way, credit cards are a viable alternate payment tool for big-ticket expenses. 

Quick Onboarding

Online credit card application cuts down on application time. So, you can easily apply digitally with basic information, submit your KYC details, apply hassle-free, and track your status. This simplifies the process for modern users, who want the convenience of applying digitally. 

Co-Branded Partnerships

Most credit card issuers partner with other brands to give their customers exclusive offers and benefits. These include offers on travel, online shopping, dining, entertainment, and other facilities. Such facilities are not available with any other option. 

Discounts and Rewards

Another key reason for the rise of online credit card services is the discounts they offer to customers. You can easily save big, especially on monthly spends, when paying with credit cards. In addition, you get reward points for spending a fixed amount with a variety of reward programs.

For example, One Credit Card offers 1 reward point for every ₹50 spent with your credit card. So, if you make a purchase worth ₹3,000, you can get 60 reward points. You can then use these points for discounts on your future purchases. 

Promotion of a Cashless Economy

The Government of India has taken many measures to combat corruption, one of which is to promote digital payment options. Digital payments are easy to track down and reduce the costs of printing and distributing cash currency. 

As more online and offline merchants open up to accepting cashless payments, customers also explore alternatives that allow them to make convenient payments. As such, credit card highlights are due to the cashback reward and other additional benefits. 

Considering all these benefits, it is evident why people opt for credit cards as payment options. This has led to the demand and growth of online credit card services and an increasing number of users. 

One of the popular card options you can consider is the One Credit Card. This credit card is most popular for its 5X reward program on the top two spends categories, zero annual and joining fees, no-cost EMIs, and more. 

The powerful app is loaded with tools to help you track and manage your credit card offers, payments, and transactions directly. This empowers you to spend more confidently, while being in full control. Apply now and enjoy an enhanced experience with this premium metal card.

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