A credit card with touch buttons: Should you get one?
A credit card with touch buttons, IndusInd Bank Ltd has come out with a new type of credit card called Nexxt. The card allows users to choose among different options such as making a regular payment or using reward points before making a spend from the card itself. Nexxt is as thick as any other card, and can be used for regular transactions at point of sale (POS) machines.
Who can get it?
An individual with a monthly income of ₹50,000 and no other debt obligations will be able to get Nexxt with a credit limit of ₹80,000 to ₹1 lakh.
The card is listed among premium products on the bank’s website. “We see two kinds of individuals adopting this card, one is people who are measured in their spending style. If the person is going to buy an air-conditioner, they would want to convert it into an EMI. If it is a spend on lunch, it will be a regular credit card payment. The second type are those who are there for the beauty of new technology that gives them flexibility,” said Anil Ramachandran, head, marketing and retail unsecured assets at IndusInd Bank.
It has a joining fee of ₹1,999, and does not have renewal or annual fees in subsequent years. The applicable rate of interest is 3.83% per month.
How is it different?
The card is interactive and comes with push buttons which can be used to choose among the options it provides—making a regular credit card payment, using your accumulated reward points or converting the spend into EMIs of 6, 12, 18 or 24 months.
Every button has a light next to it, which glows when you select an option. The card comes with a battery which the bank claims can last for five years on its own; it does not have a charging mechanism.
Regular credit cards also offer the features of converting the amount spent into EMIs or using reward points to make a payment or to write off an existing bill. However, Ramachandran said, Nexxt guarantees EMIs to customers, and makes spending reward points convenient. Sometimes, a person having revolving credit may find it challenging to convert a spend into EMI, but Nexxt guarantees it, he said. Using reward points for shopping makes redeeming convenient.
To be able to use the reward points upfront through Nexxt, the user must have a minimum of ₹500 in reward points. One reward point equals ₹1 for redemption, and you accumulate one reward point on a spending of ₹150. This means you will need to spend at least ₹75,000 on the credit card to be able to use the feature of using rewards directly through the card.
The EMI feature is applicable on spends above ₹2,000, and you won’t have to make a call to customer support to avail the feature. However, just like other cards, an amount spent and converted to EMIs will be reduced from your credit limit. For instance, if you have a ₹50,000 credit limit and you purchase a refrigerator worth ₹20,000 and convert the spend to EMIs, your limit will reduce to ₹30,000 next month.