Credit cards bring experiences to woo the young and affluent

Mumbai: Credit and debit cards that offer discounts on experiences, travel and lifestyle are becoming increasingly popular with both private and public sector banks, as financiers seek an increasing share of wallets among the affluent and the young.

Bank of Baroda, HDFC Bank and HSBC are among those banks that have recently partnered with travel companies or have offered exclusive discounts on experiences.

Bank of Baroda is the first public sector bank to introduce a travel debit card offering discounts on travel, OTT streaming services and e-commerce platforms.

HDFC Bank card holders got a 10% discount on the Diljit Dosanjh concert that drew attention for being sold out in 30 seconds. HSBC also offered a 10% discount for the Dua Lipa concert happening in November. ICICI Bank credit card holders get a 25% discount on BookMyShow.

“This space is becoming increasingly popular among affluent and super affluent customers and they are driving demand for unique experiences such as access to global artistes,” said Sandeep Batra, head of wealth and personal banking at HSBC India. “Our investment in these initiatives is aimed at growth and is designed to cater to emerging affluent and the younger demographic,” he said.

Out of the 26,000 total tickets sold for the Dua Lipa concert, 56% were bought using HSBC credit cards in the presale, data from HSBC Bank showed. Tickets for this concert were in the ₹3,500 to ₹36,000 range.Despite the premium pricing, there is an increasing demand for exclusive experiences and live events.”Our card meets the rising aspirations of our customers who love to travel and are looking for convenience and luxury. Our aim is to provide distinctive and curated bespoke benefits to meet the aspirations of today’s consumer,” said Sanjay Mudaliar, executive director at Bank of Baroda.

Credit cards in India have witnessed growing popularity, with the number of outstanding credit cards increasing by 16.4% on-year to reach 105.4 million in August 2024, according to the latest data from the Reserve Bank of India.

The credit card market has experienced growth, doubling the number of cards issued in the last five years and this trend is likely to continue in the coming years, according to a recent PwC report.

“Transaction volumes have grown by 22%, while transaction values have surged by 28%, due to new products, innovative offerings, and expanding customer segments,” the report said.

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