The advent of credit cards have not just improved the buying power of individuals, but has also made it quite imperative for the vendors to be ready with their card swiping machines, or else they would end up losing big money.
Since the latest statistics from the credit card companies elucidates that consumers spend nearly Rs 50,000 crore annually through credit cards, which is expected to grow at 50 percent over the next 4-5 years.
At present, about 87 percent of the entire plastic money transaction is done through credit cards. Further figures state that while travel and hotel bills along with dining, account for nearly 25-35 percent of the total purchases, jewellery purchase accounts for a staggering 10-11 percent. This is followed by apparel purchase at 8-10 percent and consumer durables at 6-7 percent.
"Travel has definitely become much larger a segment than what it was two years ago. Airline tickets, both domestic and international, are now bought through credit cards making it the largest category for credit card purchases," said an industry expert who did not wish to be identified.
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