Fintech Vs Traditional Banks: Who Offers Smarter Credit Cards?

The Rise of Smarter Credit Cards in India

Credit card adoption in India is accelerating, with over 100 million active cards in circulation in 2024 (RBI data). Fintech firms are tapping into the demand with simplified onboarding, app-based management, and customised benefits. Traditional banks, on the other hand, are leveraging their trust, regulatory stability, and extensive reward programmes.

This competition has made the Indian credit card market more dynamic than ever before, with consumers seeking both convenience and value.

Fintech Credit Cards: A Digital Edge

Fintech credit cards in India focus on accessibility and seamless user experiences.

Key features offered by fintech players:

• Instant approval through app-based KYC.
• Customised spending insights powered by AI and machine learning.
• Low joining fees with flexible repayment options.
• Integration with digital wallets and UPI apps for daily usage.

Traditional Bank Credit Cards: The Trust Factor

While fintechs excel in speed and digital convenience, traditional banks continue to dominate with robust infrastructure and credibility.

Strengths of bank-issued cards:

• Extensive merchant partnerships for rewards and discounts.
• High-value co-branded cards with airlines, fuel, and retail chains.
• Superior fraud protection backed by established risk management.
• Loyalty programmes offering redeemable points and travel privileges.

Banks also provide customers with offline touchpoints, ensuring access to physical support, which fintechs often lack. They also help manage issues like credit card payment reversal.

Table: Fintech Vs Traditional Banks in Credit Cards

The credit card landscape in India is evolving rapidly, with fintech challengers and traditional banks competing to deliver smarter, consumer-focused solutions.

The Middle Path: Hybrid Models Emerging

Increasingly, banks are collaborating with fintech firms to launch co-branded digital-first cards. These products combine fintech agility with the bank’s strong regulatory framework. Such hybrid cards often feature:

• Instant digital onboarding backed by bank compliance.
• Attractive cashback schemes for online spending.
• Wider acceptability, both online and offline.

This partnership-driven model is steadily growing in India, as both sectors look to capture millennial and Gen Z consumers. It’s also reshaping how credit card limits are managed digitally.

Spotlight: Airtel Axis Bank Credit Card

A practical example of this hybrid approach is the Airtel Axis Bank Credit Card. It combines the trust of Axis Bank with Airtel’s digital-first ecosystem, making it a relevant choice for consumers who want a smart blend of technology and rewards.

• Cashback on Airtel services and utility bill payments.
• Partner discounts for everyday spends.
• Ease of management via the Airtel Thanks app.

Consumer Journey: Digital Credit Cards Vs Bank Cards

Let’s examine how fintech and bank cards differ across the consumer experience:

1. Application Process
   • Fintech: Quick onboarding with e-KYC and minimal documentation.
   • Bank: Verification-heavy, with possible branch visits.
2. Usage
   • Fintech: Mobile-first, with features like spend trackers.
   • Bank: Balanced mix of offline and online acceptance.
3. Support
   • Fintech: Chatbots and app-based assistance.
   • Bank: Dedicated relationship managers and call centres.

Which is Smarter: Fintech or Banks?

When evaluating fintech credit cards in India against traditional bank cards, the answer often depends on the user profile:

• Tech-savvy, first-time users may benefit more from fintech cards.
• Frequent travellers and high spenders might prefer international travel cards and rewards-rich offerings of traditional banks.
• Hybrid co-branded cards like the Airtel Axis Bank Credit Card bridge both worlds effectively.

The Final Verdict: Choosing Smarter Credit Cards

Fintech and traditional banks are redefining the way Indians access and use credit. Fintech credit cards in India bring speed, inclusivity, and personalisation, while bank-issued cards offer trust, wider rewards, and established systems.

However, hybrid solutions are emerging as the best of both worlds. The Airtel Axis Bank Credit Card, for example, provides a smart balance of digital ease and trusted banking benefits.

FAQs

Q1. What makes fintech credit cards in India popular?

They offer instant approvals, app-based management, customised rewards, and appeal strongly to younger, first-time Indian credit users.

Q2. How do digital credit cards vs bank cards differ?

Digital credit cards emphasise speed and flexibility, while bank cards provide trust, extensive merchant networks, and stronger regulatory-backed protections.

Q3. Are fintech credit cards in India safe to use?

Yes, they follow RBI regulations, include fraud detection systems, and ensure secure OTP transactions.

Q4. Do traditional bank cards offer better rewards?

Traditional banks often provide broader merchant tie-ups, established loyalty points, and co-branded benefits, making them attractive for frequent spenders.

Q5. Which is easier to get: fintech or bank cards?

Fintech cards are easier, requiring minimal documents and app-based KYC, while bank cards often involve physical verification and longer approval.