The digital wave accelerated by automation has been a blessing in disguise. For ages, making payments has been a time-consuming, risk-ridden, and location-specific task. But, today, tech-driven alternatives - including digital credit cards - have changed the status quo. They have increased the penetration of cost-effective services and driven financial inclusion at scale. Such solutions have proven themselves to be a breakthrough in the financial industry and the field of economics at large.
For the uninitiated, a large number of credit cards already have their digital touchpoint such as apps and can also be used online. However, innovations such as Digital Credit Cards are taking everything one step ahead. It is empowering people to do a lot more with their money and how they spend it. And, they do so while ensuring a higher level of security while being interoperable. As an example, in addition to their user-friendly money management suite and enhanced spending controls, some fintech players even enable their users to use their Digital Credit Cards to withdraw cash or transfer money via UPI at no additional cost. Well, just let that information sink in for a while!
So, let’s have a quick look at how such innovative products are helping consumers manage their transactions better than ever before:
Enhanced Management of Transactions: It saves both time and money as people can use the digital card for their personal and business needs. Having a track of all the payment activity in one place increases overall transparency. Regardless of the payment type, amount, or currency, these cards enable better cash flow, which helps a consumer to manage the day-to-day transactions in a better way.
On-Demand Personal Loans: To deal with a short-term financial emergency or for making a big purchase, on-demand personal loans can also be availed with built-in EMI conversions. Such EMI conversions are also cost-effective and, in some cases, have interest rates lower than most personal loans.
Personalized Advantages: A huge benefit of digital credit cards for consumers is that they can personalize offers, vouchers, and also cashback depending upon the spending pattern of a person. For instance, if people spend more on lifestyle needs, they get an added cost advantage with curated offers that match their spending pattern.
Preventing Credit Card Debt: Such credit cards also ensure that people do not get into the vicious cycle of credit card debt by creating maximum visibility. Unlike other credit cards, this approach ascertains that people make informed decisions. Often, it is observed that credit card debts are also because of a few months of financial distress. So, the ability to convert the bill amount into personal loans also comes in handy. On top of it, some Digital Credit Cards also feature spending limits that prevent excessive spending to a great extent.
Multilingual Chat-Based Assistance: Users can also get support from the instant chat-based support provided by digital cards. Its multilingual nature caters to the grievances of a diverse population, ensuring everyone stays on the same page.
Advanced Security Features: The security features of digital credit cards are far more enhanced as they are equipped with device identity management, fraud risk management, and pattern-based transaction security.
Additional Benefits: There is a risk of theft and misuse of digital credit cards by anyone. They safeguard their customers from them by extending secondary credit cards. These cards are issued for a particular period of time. Besides that, if a specific sum of money remains unused, it gets transferred to the primary card.
Therefore, the ease at which payments and transactions can be initiated and successfully completed with proper authentication will inevitably ensure the wide adoption of digital credit cards in the future. The availability of these digital cards at the click of a button is truly a boon for all.