Credit Cards - Growth Opportunity Should > Regulatory Changes, Competition: ICICI Securities
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
The digital payments universe is undergoing significant growth and the need to cut merchant discount rates has often been a point of discussion on increasing the acceptance of credit cards.
The need to maintain business profits to develop the point-of-sale infrastructure and, at the same time, aligning smaller merchants towards digital payments, is a critical balancing act that can be achieved through an optimum MDR.
While a cut in MDR could potentially lead to earnings cut for card companies in the near term, in the Indian context, the under penetration of credit cards embodies a bigger growth opportunity.
As such, credit card companies can invest more in other value-added services centering on innovative lending to generate alternative revenue streams.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.