Travel credit cards are amassing their followers in Tier 2 and Tier 3 cities. As compared to larger cities, their popularity has skyrocketed in recent times in these smaller cities. But what makes the need for these increased demands?
Travel Credit Cards See Rise In Tier 2 & 3 Cities
According to a recent consumer study by ZET, an Indian fintech platform, credit card usage is increasing in Tier 2 and 3 towns and cities, with travel and e-commerce credit cards seeing greater adoption rates.
These cards have gained popularity in Tier 2 and Tier 3 cities due to increased access to travel and leisure opportunities. Demand for travel credit cards climbed the fastest in 2023, with a 27% year-on-year gain. Travel rewards earned through credit cards can often be redeemed for a variety of benefits. Offerings such as air miles, hotel discounts, and travel rewards are becoming popular among consumers in these cities.
Cities with improved connections and infrastructure have seen an increase in travel credit card usage. As more people from these regions explore travel choices, the popularity of such cards is expected to expand. The highest demanding cards include:
- SBI IRCTC,
- Axis Vistara, and
- IDFC Vistara.
The study also found a 19% year-over-year gain in New-To-Credit (NTC) consumers, with nearly half being under 25 years old. NTC users selected AU Small Finance Bank, SBI, and Axis Bank credit cards mostly.
Also Read: 95% Of Indians Prefer To Use Credit Cards For International Travel As It Offers More Rewards & Perks
The Reason Behind This Rise?
Increased urbanisation, rising disposable incomes, greater ambitions, and the government’s push for digital transactions have all contributed to the surge in adoption. India’s Tier 2 and 3 cities are leading the way in credit card growth, promoting financial inclusion in emerging markets. Most premium cards give access to airport lounges. This is useful when travelling from Tier 2 or Tier 3 locations.
These are the Top 10 Tier 2 and 3 cities unlocking the benefits:
- Jaipur
- Surat
- Chandigarh
- Indore
- Guntur
- Gurgaon
- Gautam Buddha Nagar
- Bhopal
- Vadodara
- Lucknow
In recent times, these cards are said to become more popular among Gen-Zs and smaller cities. What do you think of this new trend?
Cover image credits: Canva
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