If you’ve ever shopped online during a Big Billion Sale on Flipkart, or the Great Indian Festival on Amazon, you must have noticed one thing – almost all the flashy discounts are tied to credit cards.
“Flat 10% off on XYZ Bank Credit Card”, “Instant 1,500 Cashback on Credit Card Payments” – sounds familiar, right?
But have you ever wondered – why only credit cards? Why not debit cards or UPI?
Let’s break this down in simple words, Indian style, with real-life examples you can connect to.
The Short Answer – Credit Cards = Business Booster
Credit cards are not just plastic money. For banks and companies, they are a powerful tool to earn more business.
Every time you swipe or tap your credit card, the bank earns a small commission from the shop. Plus, you as a customer tend to spend more because you don’t have to pay immediately.
So, banks happily give discounts and offers because:
- They want you to use credit cards more.
- They earn more commission on credit cards compared to debit cards or UPI.
- You end up shopping more during sales because of those tempting discounts.
The Magic of “Spend Now, Pay Later”
One big reason why companies push credit cards so much is the “spend now, pay later” habit.
Let’s say you go shopping during Diwali. You see a fridge worth ₹40,000. If you had to pay by debit card or UPI, you’d think twice – “arre yaar, pura paisa abhi nikal jaayega (all money will go now).”
But with a credit card, the fridge feels lighter on your pocket because:
- You can pay next month.
- You can even convert it into EMI.
- Plus, you may get ₹3,000 instant discount if you use your credit card.
So, instead of thinking twice, you happily buy it. And that’s exactly what banks and brands want – your purchasing power increases.
Why Not Debit Cards or UPI?
Good question! After all, debit cards and UPI are more common in India.
But here’s the reality:
- Banks earn peanuts from debit cards and UPI.
- For UPI, there’s zero transaction fee (thanks to government policies).
- For debit cards, banks earn very little commission.
- Credit card customers are more profitable.
- Banks can charge annual fees, late fees, and interest if you don’t pay on time.
- They can also cross-sell loans, insurance, and more to credit card users.
So naturally, banks and e-commerce giants shower discounts on credit cards, not on debit cards or UPI.
Festive Sales in India – The Credit Card Playground
You must have seen how during Amazon Great Indian Sale or Flipkart Big Billion Days, every ad screams:
👉 “Extra 10% Instant Discount with HDFC Credit Cards”
👉 “SBI Credit Cardholders get ₹1,500 cashback”
Why? Because:
- Banks like HDFC, ICICI, SBI, Axis, etc. tie up with e-commerce giants.
- The bank funds part of the discount, the company funds part of it.
- Together, they make the deal look too good to resist.
For example:
If a mobile costs ₹20,000, Amazon may give ₹1,000 discount and HDFC Bank may give another ₹1,500.
So you, as a customer, save ₹2,500 – but in the process, Amazon sells more phones and HDFC gets more credit card swipes.
Simple win-win.
Psychology of Discounts – Indians Love “Jugaad”
Let’s be honest, hum Indians are deal hunters. We love “jaha discount mile, waha swipe karo”.
And companies know this very well.
When you see a 10% instant discount with your credit card, your brain lights up. Even if the product price is inflated during sales, that “extra discount” makes you feel like you’re winning.
Credit card offers play with our psychology. You may not have planned to buy that extra mixer grinder or headphones, but when you see a credit card discount, you often go:
“Arre chhod na, discount mil raha hai, le lete hain.”
The Indian Market Angle
India is still growing when it comes to credit card usage. As of 2025, we have around 10 crore credit card users, compared to 100+ crore debit card/UPI users.
This means banks and companies are pushing hard to get more people to use credit cards. Discounts and cashback are their weapons.
Think of it like free samples in supermarkets – once you taste it, you’re hooked. Similarly, once you start enjoying credit card benefits, you tend to swipe more often.
But Wait, There’s a Catch
Now, all this sounds rosy, but remember – credit card discounts are not free charity.
Here’s the flip side:
- If you don’t pay your bill on time, interest rates are sky-high (36–42% per year).
- Some cards have hidden annual fees or joining fees.
- Banks use discounts to tempt you into spending more than you actually need.
So, always use credit cards smartly. A discount is good only if you were already planning to buy that item. Otherwise, it’s just extra spending.
Real-Life Example
Let’s say Rahul from Delhi wants to buy a laptop worth ₹60,000.
- With debit card: He pays full ₹60,000 instantly.
- With UPI: Same thing, ₹60,000 gone immediately.
- With credit card:
- He gets instant ₹5,000 discount.
- He converts remaining ₹55,000 into 12-month EMI.
- He pays just ₹4,500 per month.
For Rahul, this feels super convenient. For the bank, this is profitable because they earn interest/fees on EMI. And for the laptop seller, Rahul became a confirmed customer only because of the discount.
That’s the power of credit card offers.
How prkshadvisors Helps You
At prkshadvisors, we understand that discounts and offers can be confusing. Not every offer is worth it, and sometimes the hidden charges take away the benefit.
We guide you on:
- Which credit card suits your lifestyle.
- How to maximize discounts without overspending.
- How to avoid debt traps while enjoying the perks.
Because end of the day, credit cards are powerful tools if used smartly, but dangerous if misused.
Final Thoughts
So, why do only credit cards have so much discount?
Because they make money for banks, boost sales for companies, and tempt customers to spend more.
It’s a business strategy, not a favour.
Next time you see a shiny “10% Instant Discount on Credit Card Payments” banner, remember – it’s a game.
Play it smart, and you win. Play it carelessly, and the bank wins.
With guidance from prkshadvisors, you can make the most out of these offers and keep your money habits healthy.