Rising wealth in semi-urban and rural markets holds great potential for the banking sector, and Axis Bank is seeking to capture a bigger chunk of the country’s credit card market, a senior business executive said Monday. .
Consumer spending in India is growing rapidly and by 2026, two out of three transactions are expected to be made using digital forms of payment, according to Amitabh Chaudhry, Managing Director and CEO of Axis Bank.
“India is heading for an interesting time, it is one of the fastest growing economies in the world and it is on its way to becoming a $5 trillion economy. rapid fundamental changes, especially in the banking and financial sector, such as consumerism and disruption, etc. “And that is why large private banks like ours have made investments to improve their operations and modernize the technological architecture Also, I think the real differentiation would come from being distinctive and developing exclusive personalized products driven by innovation,” Chaudhry said at the launch of the co-branded credit card with Samsung and the solution provider. Visa payment.
He said the national government and RBI have made several attempts to transform India into a digital economy. The RBI’s introduction of a central bank digital currency, along with innovations such as UPI payments, are all steps in the right direction. All of this, coupled with easier customer onboarding, better consumer knowledge and broader acceptability, bolsters industry opportunities, according to the official.
The country’s third-largest private sector bank by asset size has a 16% market share in UPI transactions and a 22% market share in UPI P2M (payments to merchants) transactions. It is the fourth-largest player in the credit card industry, with more than 17% additional market share in the last six months and 12% at the end of the first quarter ended June of the current financial year.
The bank’s acquisition of credit cards in the June quarter quadrupled from a year earlier, totaling over one million (10 lakh) cards. Sanjeev Moghe, President and Head-Cards and Payments, Axis Bankexplained the partnership with Samsung by stating that it is one of the biggest brands in the sector and that the bank has always favored innovation and novelties.