HDFC Bank has launched ‘PIXEL’ credit cards that are being billed as fully digital offerings. PIXEL comes in two versions ‘PIXEL Play’ and ‘PIXEL Go’. While banks already allow electronic versions of physical credit cards enabling UPI and digital transactions, HDFC’s PIXEL Play and PIXEL Go are entirely digital offerings.
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The customer will be onboarded for the digital credit cards through HDFC Bank’s PayZapp App. Following this, he/she will receive an instant digital credit card. Customers can manage the credit card using the app. They can access features such as card controls, rewards, EMI (Equated Monthly Instalments) dashboard, statements and notifications among others through the app.
Since the card is 100% digital, customers can avail it only through the app. The ‘PIXEL Play’ card is available for salaried persons between 21 years and 60 years of age with a monthly income of ₹25000. For the self-employed, the card is available for those between 21 years and 65 years of age with an annual taxable income of ₹6 lakh.
For ‘PIXEL Go’, the conditions are the same except that salaried persons with an income of ₹8000 per month can also avail it. The joining fee is ₹500, which would be waived if the customer spends ₹20000 within 90 days from the issuance of the card.
“PIXEL represents a pivotal shift in our approach to banking solutions, crafted to resonate with digital natives. We are excited to introduce this digital-first credit card that offers flexibility and customization,” said Parag Rao, Country Head – Payments, Liability Products, Consumer Finance & Marketing, HDFC Bank.
While the card is completely digital, the bank will give a physical card only if the customer insists on one. Since both the PIXEL cards are app based, customers have to simply download the PayZapp app, apply, get the card underwritten and get it instantaneously—all through the online mode.
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How does the digital only credit card differ from others?
Unlike the traditional credit cards, which come with fixed offers and rewards, this virtual card allows customers to tailor rewards to suit one’s lifestyle and requirements. Customers also have the flexibility of choosing the merchants who offer the highest cashback (up to 5%).
“The bank gives the power of customisation and choice to customers, by enabling them to select their preferred categories and favourite merchants/platforms,” HDFC said.
Digital credit cards allow customers to choose the card design that reflects one’s personality and also decide the preferred payment cycle.
The entire application process, card management and EMI conversions happen with the PayZapp app. There is no need to submit physical documents and make phone calls.
Flexibility is the buzzword with the card. The customer can change the chosen merchant every three months though the PayZapp app without any additional cost.
Digital credit cards can be used on multiple channels. With most merchants using QR codes as the mode for receiving payments, a digital card would serve the needs of the customers better.
Customers can store the digital credit card on the app for conducting transactions.
Things to keep in mind
Customers will do well to keep in mind that everything in digital credit cards revolves around the app. If you are not comfortable managing your finances through an app, digital credit cards would not be suitable.
Though the card allows you to choose your preferred payment cycle, which can be aligned with your salary timeline, the interest-free period is 50 days from the date of purchase, which is similar to physical credit cards.
Unlike physical credit cards, customers would not be able to withdraw cash using the digital cards.
