Thread by @Select_Finology

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