When the first market saturation of credit cards happened in the late 1990s and early 2000, Indian consumers were not used to plastic money. The freedom to spend today and pay 45 days later led to a massive credit card payment sales boom. Almost all working adults in India’s big cities were easily carrying 2 to 3 credit cards in their wallets.
However, the flip side to this was that people ended up spending way beyond their means and couldn’t always pay off the entire balance every month. The attractive option of paying only the minimum monthly payment became very popular at this time. However, this also led to the working population sinking heavily in debt and arriving at a point where most customers defaulted on their credit card payment processes. The collections industry reared its head, and slowly regulations started coming in with the formation of CIBIL. Credit Card payment providers experienced tremendous losses, with some banking institutions going under.
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It was a dark time, but with years of use and the learning from those years, the Indian working population got smarter about their use of credit card payment. In contrast, providers got smarter about whom they provided credit cards to and up to what limit, keeping in mind that they want to see a repeat of those dark times under no circumstances.
Today, credit card payment providers are brilliant about risk assessments, CIBIL scores, and individual consumers’ credit limits. They are also always looking at ways to ensure that their bill repayment rates are heading in the right direction. Some of the things that credit card providers are doing to ensure that they can help customers stay on track with their credit card bills are listed below:
Making bill payments easy
Credit card payment providers are integrating the Paytm payment suite to provide their customers with as many options to repay credit card bills as is allowed by the regulatory authorities. Since customers cannot pay off one credit card bill with another credit card, it is necessary to have a system that offers only the allowed pay modes. The Paytm payment solution suite engineered specifically for NBFCs, digital lenders, MFIs and Banks, has been designed to give the customer the ease to choose between paying by Debit Card, NetBanking, or even UPI. Through this solution, customers can quickly repay their credit card bills with just a few clicks or taps on their phones.
Customized bill payments page
When customers visit the bill-pay page, it is an incredibly jarring experience to have the page’s branding change from that of their credit card payment provider to a completely different entity. Customers are too savvy and even paranoid due to the number of scams reported around credit cards. Credit card payment providers integrating the Paytm payment solution suite get the automatic advantage of setting up a bill-pay page that is co-branded. This advantage ensures that while the customer understands that the payment is happening via a gateway that is not the credit card payment provider, their experience remains seamless. They should know they are still within a process that their credit card payment provider has designed.
Payments via the Paytm App
Credit card payment providers have seen much success with this feature. To make payments via any other channel, customers have to go through many hoops before making their credit card payments. Credit card payment providers who integrate with the Paytm App have experienced the ease of integrating their database. When a customer who uses the Paytm App for their transactions wishes to make a credit card bill repayment, they can select their credit card payment provider. They have to enter their account number then, confirm that the fetched information is correct, and make the payment.
An excellent way to increase credit card bill repayment rates is to make the repayment process easy and hassle-free for customers, which the Paytm payment solution suite is perfect for.
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