At Infosys Cards and Payments, we help our clients harness the power of technology-led innovation across the entire payments ecosystem encompassing payment networks, merchant services, stored value, FI payment services, and payment aggregators. Our thought leadership and a design thinking approach helps us co-create solutions with our clients to address their business problems.

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Case for promoting responsible spending

 

When credit card was introduced people started spending more than cash. Payments is attributed for lot of shopping cart abandonment - we all hate paying for things. With the new trends to make consumer payments process invisible (passive payments) the hope is consumers will feel more at ease and spend much more. With Social-Local-Mobile (So-Lo-Mo) targeted offers, gamification and predictive analytics we will probably see lot more customer spend - and sometimes spending for unnecessary stuff beyond our means. I don't need another mobile phone - but my credit card has a 20% off offer (also I can pay in installments) if I spend more than $200 and then this model is the latest trend in market (all my friends have it). We all have faced similar situations before and this is the big conspiracy theory of consumerism.

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More spend in credit card is generally good for the Payments players (Card Networks, Issuers, Acquirers, Processors etc.) and for the merchant. But there are cases where it may not be good for Issuers and consumers. You make a big spend but could not pay for it - ultimately it is losing proposition for both you (credit score hit, legal issues etc.) and your card issuer (credit loss, pain of collection etc.). I want to make a case for responsible spending and reminding customers in those specific scenarios. As a consumer you are close to touching your credit limit or late on payments in past balances - card Issuer should remind you real-time basis to validate if the purchase really make financial sense considering the situation you are in. In the long term I think responsible spending helps everyone even though in short term that may be bad for few players. Responsible spending helps society by allocating resources properly without going through boom and bust.

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