The credit cards market in India is changing rapidly. Now they are not limited to just shopping and EMI, but are becoming a status symbol of luxury lifestyle. Super-premium credit cards with fees running into lakhs of rupees are claiming to give their customers VIP entry to the Grammy Awards, discounts on private jet bookings, airport tarmac transfers and special facilities at luxury hotels. But the question is, do these royal benefits really make up for the cost of such expensive cards?
Big banks of the country are now focusing on rich customers i.e. Ultra High Net Worth Individuals (UHNI), business owners and people having high value banking relationships. The purpose of these cards is not just to enable spending but to sell exclusive experiences. According to Santosh Agarwal, CEO of Paisabazaar, super-premium cards are made for people who are frequent users of travel, hotels, golf and luxury amenities. Many cards are given only through invite.
Axis Primus Card
Axis Primus Credit Card is included among the most expensive credit cards in the country. Its joining fee is Rs 5 lakh, while the annual fee is more than Rs 3 lakh. Through this card, customers get complimentary companion airfare on business and first class tickets. Apart from this, facilities like international golf access, zero forex markup and personal concierge services are also provided. This card is offered only to selected customers.
American Express Platinum
The American Express Platinum Card is known for its global experiences and VIP event access. With an annual fee of around Rs 66 thousand, this card gives customers pre-sale tickets and special access to big events like the Grammy Awards. Apart from this, cardholders also get facilities like fashion week, international concerts and premium hotel partnerships. Welcome benefits are also given after completing the initial expenses.
HSBC Taj Card
HSBC Taj Credit Card has been specially designed keeping in mind the luxury hotel and travel experience. Due to the partnership with Taj Hotels, cardholders enjoy hotel stays, dining and special hospitality benefits. This card targets customers who frequently use luxury travel and hotel services.
Axis Burgundy Private
Axis Bank Burgundy Private Credit Card is designed for private banking customers. Its fee is Rs 50 thousand annually, although it is given free to Burgundy Private account holders. This card offers benefits like unlimited airport lounge access, Club Marriott and Accor Plus memberships, golf rounds and airport transfer discounts. Apart from this, zero forex markup is also given on international spending.
Emphasis on travel in IDFC FIRST and Axis Reserve cards
Cards like IDFC FIRST Private Credit Card and Axis Reserve Credit Card also focus on high-end travel and lifestyle features. Features like unlimited airport lounge access, spa access, golf privileges and premium hotel membership are available in these cards. High reward points and low forex charges on international spends also attract customers.
YES Private Credit Card
YES Private Credit Card remains in the news for luxury travel experience. With this card, customers get facilities like airport tarmac transfer, private lounge access and chauffeur-driven transfers. Apart from this, facilities like savings of up to $1000, luxury hotel upgrades and complimentary breakfast are also offered on private charter bookings. The card also includes low forex markup fees.
Do the benefits really outweigh the costs?
Financial experts say that such cards should not be just status symbols. Their heavy fees can be recovered only if the customers actually make full use of the travel, hotel and lifestyle benefits available to them. In many cards, it is necessary to spend lakhs of rupees annually to avail milestone benefits. In such a situation, these cards may prove to be more expensive than beneficial for common customers.
Rapidly growing super-premium card market
With the increase in the number of rich people in India, banks are now selling exclusivity beyond cashback and discounts. Luxury experience, VIP access and elite lifestyle have now become a part of the new age credit card market. However, ultimately the real value of these cards depends on how much the cardholder utilizes these facilities. Otherwise, fees worth lakhs may remain just an expensive status symbol.
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