On February 6, HDFC Bank, the biggest private sector bank in India, introduced four new credit cards designed specifically for small and medium-sized businesses (SME) to meet the demands of professionals, freelancers, and entrepreneurs.

The primary unique selling point of the cards is that they give the longest period of interest-free credit—55 days—of any bank. They also offer discounts on essential business expenses like vendor payments, income tax, GST, electricity bills, business travel, and productivity tools.

The bank stated in a press release that the new cards will be a part of its robust portfolio of SME payments products, which also includes BizFirst, BizGrow, BizPower, and BizBlack. It went on to say that the SME Payment Solution is made to accommodate the various payment requirements of MSMEs, SMEs, and independent contractors.

Designed to meet the demands of companies for both accounts payable and receivable, HDFC Bank has unveiled a single digital platform that combines all payables, including utility bills, vendor payments, and statutory payments, among others. The platform's goal on the receivables side of payments is to manage and optimise supply-chain agreements and reconciliation from beginning to end. For improved cash-flow management, the platform offers a comprehensive dashboard with a single view of all accepted and made payments.

Important characteristics of company credit cards:

  1. The industry's best free credit period is up to 55 days.

  2. Reward Points for Business Spending Up to 10X*

  3. Package of Business Insurance Carefully Selected

  4. Exclusive Redemption Catalogue with an emphasis on Busine

  5. EMI and credit card loans

What comes next?

In order to meet the unique demands of the newly rising freelancer/GIG worker segment within the self-employed category, HDFC Bank will soon be releasing the GIGA Business Credit Card.

"At HDFC Bank, we're dedicated to meeting the various payment requirements of independent contractors and businesses of all sizes, from MSMEs to major corporations. Our business range of credit cards is made to be a useful game-changer in supporting the everyday business demands of the self-employed population because we understand their unique requirements," stated Parag Rao, Country Head, Payments, Liabilities Products, Consumer Finance & Marketing, HDFC Bank.

As of December 2023, HDFC Bank held the greatest market share in terms of spending in the credit card industry, with 27.1%. In 2001, the bank launched its credit card division. In 2017, it celebrated the launch of its first credit card and hit the one crore cards in circulation milestone. Since then, the quantity of cards has risen to 2 crore. According to a press release from the corporation, the milestone was reached on January 16.

According to the corporate announcement, "We have become the first and only lender in the country to achieve this feat."

The monthly card spending of HDFC Bank ranges from Rs 35,000 to Rs 45,000 crore. Eight percent of the bank's retail assets were made up of payments, which includes credit cards and consumer durable loans, as of December 2023.

The number of HDFC Bank cards in circulation in November 2023 was close to 19.51 million, up from 19.18 million in October 2023, according to data from the Reserve Bank of India. In terms of how many credit cards are issued, HDFC Bank is trailed by SBI Card, ICICI Bank, and Axis Bank.