Credit cards are available in a number of types, depending on a card’s purpose, and these can be used for shopping, corporate use, travel and the like. In India, a country accustomed to cash for its financial transactions, the user base of credit cards touched 47 million in the year 2019. The market is expected to grow at a cumulative aggregate growth rate of above 25 per cent between 2020 and 2025.

The popularity of credit cards is rising to surprisingly high levels as India’s demographic wants to climb the digital ladder, and like its western counterparts, carry plastic, as it is not only more convenient, but gives the average Indian the means to spend freely, affording anything in a moment.

The credit card market is still smaller than the debit card market, but since banks and credit card companies are focusing on urban and semi-urban markets, it’s expected to come close to the famous debit card. In the ever-growing credit card market of India, cards issued for general purposes hold sway.

These types of cards are likely to continue their dominance as these can be used in a variety of circumstances, their main use being shopping. Credit cards for corporate use are less, as this is a niche segment. The corporate credit card may be used by large multinational companies, for the main purpose of entertaining guests and travel needs.

Corporate credit cards are issued to employees of corporations, allowing them to charge official business expenses straight to the company. Although this may be one way corporate credit cards are utilized, any business people can avail of corporate credit cards as well.

How Corporate Credit Cards Work

Corporate credit cards are issued by banks and financial institutions, offering a line of credit to consumers. Primarily, these cards are issued with a view to being used for business travel and corporate-related spending. Major players that operate in India in this segment are HDFC Bank, SBI, Axis Bank, Citibank and Bank of Baroda etc.

 The corporate credit card may be authorized for use internationally as it is often used while businesspeople and professionals travel. At the end of 2018, the Reserve Bank of India discontinued the use of old credit cards with magnetic strips in an effort to curb credit card fraud, both within India and with credit card use abroad.

More about Corporate Credit Cards

Corporate credit cards are created to satisfy the needs of established companies. Typically, these companies have revenue of at least $4 million annually. Banks and financial institutions prefer to reserve corporate credit cards for large conglomerates. These cards have high cash limits and offer many bonuses and reward points as purchases are made.

Corporate credit cards are issued on the basis of the financial health of the corporation, and not the user’s personal financial status. Banks and financial institutions, for instance, may require companies to produce recently audited financial statements, details about the structure of the company, tax information etc.

Different Corporate Credit Cards

For a corporate credit card, the company concerned usually applies to the card issuer on behalf of its employee. Financial institutions like Bajaj Finserv also provide credit cards that can be used by business people, and it’s easy to know how to apply Bajaj Finserv credit card use is popular among small businesses, but there are other types of corporate credit cards used for larger companies, such as those from Citibank, Axis Bank, SBI and HSBC. Top corporate credit cards have high joining fees, as well as annual charges.

 Financial charges and interest rates may be on the upper end, but large companies don’t mind as company credit cards can track employee expenses, and moreover, can afford high charges. The perks offered are also on the elevated side as they include higher reward points, and miles earned on air travel, plus access to airport lounges and deals in dining and entertainment.