India has predominantly been a Cash driven economy. However, the growth of e-commerce, online shopping and travel booking in the last few years has given a boost to use of credit cards. Customers particularly working individuals in the age group of 18-40 have been an early adopter of the plastic money. The growth has been concentrated in Tier 1 cities and has been inching slowly in Tier 2 markets as well.
The growth of plastic money usage from ATM/Debit Cards have motivated Indian Banks to add more credit cards in their portfolio. The banks have started issuing credit cards offering cash back, miles and points to cater to different consumer needs. All major India Banks including ICICI, SBI, HDFC, HSBC, CITI and others have offered credit cards with a variety of offers across online and in-store merchants. Both Debit and Credit Card issued by the Indian Banks offer a great variety rewards to their customers.
While there is a healthy growth of credit and debit card adoption in the country, there is not much focus been given to help customers select the most suitable card for their needs. Most of the credit card selling are either untargeted or uses a very high level of demographic & spending characteristics. There are some companies which are targeting based on credit scores. However, there has been not much work on selecting the suitable credit card based on the customer’s shopping habits both in-store and online.
In the next series of articles, Mohurs wants to evaluate credit card available in Indian Market for the associated Reward Program, available offers, interest rate, joining and annual fees. We will also evaluate the customer profile which will be benefited more from the card.
Citibank Rewards Visa Signature Card
Continuing Rewards Benefits:
The first in series to evaluate is ‘Citibank Rewards Visa Signature Card’. For Shoppers who spend a lot of money in apparel and department store shopping, Citibank Reward Card is one of the best in the market. This card offers 10 rewards point for apparel and department stores shopping. Shoppers can also earn up to 10 X reward points while shopping in few of the biggest brand stores including Booking.com, Flipkart, MakeMyTrip, freecharge, gofers etc.
For all other categories, the card offers 1 reward point for every Rs 125 spent.
One-time Rewards Benefits:
The card offers multiple one-time reward benefits to its customers. This includes 1500 points for the first spend in 30 days. Additional 1000 bonus points for spending Rs 1000 in first 60 days. Customers get 500 bonus points on their birthday. They also get 1000 bonus points on card renewal. There are 500 bonus points for 3 additional cards.
In total, customers can get around 4000 one time bonus points.
Points that don’t Expire!
The CitiBank Rewards Points don’t expire and consumers can keep accumulating. The points redemption network is pretty strong. The points can be redeemed at
- a) 800+ IndianOil Fuel locations.
- b) In-store shopping at more than 700 stores.
- c) On Air India and Jet Miles Frequent Flyer memberships.
- d) Cash back
- e) Gift vouchers
Interest Rate and Annual Fees
Interest Rate is 3.25% per month (39% per annum). There are no introductory APRs on the card. The Annual fee is Rs 1000. This fee is waived off for spending Rs 30,000 or more on your card in a year.
Coupons and Offers
The Card offers 20% discount across 2000 restaurant across the country.
Who Should own or apply for this Card
This card is one of the best available in the market for shoppers who spend a lot of money in Apparel and Department shopping. This is also one of the good cards in the market for shoppers who spend big on online shopping. For Restaurant goers, the card will have a decent 20% discounting at the limited participating restaurant.
Things which are not so good about the Card
There is no introductory APR on the card. So for a shopper who does not pay out complete amount every month, the APR is a pretty high expense.
The reward points for categories other than apparel are very meagre and the card does not offer much to people spending a lot in other categories like grocery, travel etc.
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