select_finology Profile picture
Apr 11 7 tweets 2 min read Twitter logo Read on Twitter
UPI vs Credit Cards ⚔️

Feb 2017 -
• UPI - 1,900 Cr
• Credit Cards - 28,740 Cr

Feb 2023 -
• UPI - 12.3 Lakh Cr
• Credit Card - 11.9 Lakh Cr

The two payment technologies are duelling for the same space

Here's why credit cards are growing ⤵️
1/5
It's largely due to reward points 🏆

In recent years, banks and credit card companies have been offering more and more lucrative reward programs to attract customers to use their cards 🤩
2/5
These rewards can include cashback, discounts on purchases, travel perks, and more ✈️

Many customers find the promise of these rewards too good to skip and are using their credit cards more often to earn them 🛍️
3/5
While the use of credit cards can be risky🛑, especially for those who struggle with debt, responsible use can actually help improve your credit score and financial standing 🤕
4/5
For instance - When we shop online, the discounts or cashback on the website attract us to buy more products 🛍️

This gives us an illusion that we're saving money while we end up shopping more 😵
5/5
Overall, while credit card usage does come with risks, the growing popularity of rewards programs is driving more people to use their cards 😮‍💨
If you're considering using a credit card for the rewards, make sure to do so responsibly and pay off your balance in full each month to avoid accumulating debt ⚠️

Let us know how you use your reward points 👇🏻

#personalfinance #creditcard #UPIPayments

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More from @Select_Finology

Apr 13
In India, only 4 out of 100 people have credit cards.🤯

In other countries, this number is high📊

🇺🇸 USA 340
🇧🇷 Brazil 132
🇬🇧 UK 92
🇨🇳 China 55
🇮🇳 India 4

Here are 5 reasons why credit card penetration remains low ⤵
1. Lack of awareness

Many people do not know the benefits of credit cards.

→ Cashback rewards
→ Discounts
→ Protection against fraudulent transactions
→ Rewards points

Banks need to invest in educating the public.
2. Fear of credit

People are afraid of getting into debt.

Many do not understand that credit is a tool that can be used to build wealth.

Credit can be used to start businesses, invest in stocks or real estate, or pay for education.
Read 7 tweets
Apr 12
Number of Credit Card Complaints over the years💳

FY15 7472
FY16 8740
FY17 8297
FY18 12647
FY19 13274
FY20 28713
FY21 40721
FY22 32162

Have you ever logged a complaint for your card? 🤔

Let's decode 5 common types of complaints registered ⤵
1) Charges without prior notice.

Root Cause: Lack of awareness among customers regarding the general terms and conditions of usage of credit cards such as:

• Minimum amount due
• Due date
• Billing cycle
• Total outstanding balance
• Impact on CIBIL score
2) Fraudulent transactions in undelivered Credit Cards.

Root Cause:

• Re-issuing pre-activated Credit Cards
• Billing of undelivered/ returned Credit Cards.
Read 7 tweets
Apr 10
According to a survey - 57% of all Indians (around 80.7 crores) have less than ₹5,000 in their savings account or emergency fund 🤯

This is an alarming statistic that highlights the lack of a savings culture in India ⚠️
2/
One of the reasons for this could be the widespread adoption of digital payments in the country 📲 💳

While digital payments have made transactions easier and more convenient, they have also made it easier for people to spend money without realizing it 💸
3/
With digital payments, people are no longer limited by the amount of cash they have in their wallets.

They can simply use their phone or card to make purchases 🛍️, often without even thinking about the money they are spending 🤔
Read 6 tweets
Mar 31
Total Cards in India 💳

•Debit Cards 95.0 Cr
•Credit Cards 8.3 Cr

Their Transactions Value 🪙

•Credit Cards 118 Cr
•Debit Cards 49 Cr

(As of Feb 2023)

Let's separate the hype from the facts.

The 7 key differences you need to know ⤵
1) Paying now vs paying later.

Debit cards: Your purchases are automatically deducted from your checking account. You’re limited by how much you have in there.

Credit cards: Money is borrowed from a bank or financial institution, which must be paid back later.
2) Credit score.

Debit cards don’t affect your credit score. Credit cards do.

If you pay off your credit card in full before the due date, your credit score increases.

If you carry a balance or make late payments, your credit score drops.
Read 10 tweets

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