The Hindu Business Line : Credit card clichés

There is this anecdote about a man who decides not to report the theft of his wife's credit card. Asked why, he had this to say, "The thief is spending much less than my wife!" Many versions of this stereotype exist, and of course women frown at all of them!

But is there really a gender difference to credit card usage?

Surveys are not much help here; VISA, the electronic payment network major, does not reveal whether it has conducted a survey on these lines. A Venture Infotek survey found that credit card spends in 2004 were in the region of Rs 20,555 crore. And a MasterCard Consumer Lifestyle survey found that 73 per cent of Indians spend less than $ 35 per month (about Rs 1,600) using their cards. But again, these surveys offered no gender-based break-up. Coming to banks, most of them don't offer any clear statistics to determine whether one gender is a bigger spender than the other. Perhaps it suits the banks to keep such information top secret!

But banks do find more women using credit cards today. ICICI Bank, for instance, offers co-branded cards with the Big Bazaar and Trinetra retail chains. "We have done this from a value perspective, rather than take a sexist approach. Women have taken nearly 35 per cent of these cards," says B. Madhivanan, General Manager and Head-Credit Cards, ICICI Bank. "Credit cards have hitherto been a predominantly male-oriented, metro phenomenon. But that is changing slowly. About 14 per cent of our credit card base of 3.5 million comprises women. This segment constitutes independent career women as well as homemakers from affluent households."

The bank's co-branded card with HPCL attempts to reach women with a driving licence, assuming that such women would be comfortable with the idea of using a credit card.

When asked about average spends of either gender, Madhivanan says generally women use the card to shop for grocery and apparel while men spend on travel and entertainment. Hotel and air ticket expenses add about 35 per cent more to credit card spends by men, he says.

Says Vijayshanti, a professional analyst in her mid-20s, "My spending on the card varies from nothing to a bout of sudden splurging."

What does she spend on? "It could be a round of shopping when I blow up about Rs 3,000. But mostly it is for eating out at restaurants — that comes to about Rs 400-500 every fortnight. Occasionally I put some bulk expenses also on the card — for example, I may pay for some classes through the card or put some gym expenses on it."

Stan, a writer who is now on her second card, says, "I gave up my old credit card because I am a spendthrift. Now I have an add-on card from my husband. I use the card mainly to fill petrol. Occasionally I buy gifts and books for friends and relatives."

What about grocery shopping? "I really don't need a credit card for groceries. I simply have to call up my grocer at the street corner and he has the stuff delivered within minutes — and he extends credit for at least a month. Unless one shops in a retail supermarket, one doesn't need a credit card."

This appears to be a pretty common and popular arrangement.

As for the male spendthrift (yes, he exists... despite the skewed gender jokes), Stan says, "My husband is forbidden from using his card at retail shopping outlets. He can't stop himself!"

Bhushan, an IT professional, describes his card usage with some diffidence, "I'm not the typical card user. I usually carry cash for all my planned purchases. I use the card only occasionally. My purchases on a single swipe never exceed Rs 1,000. I might use it for books and music CDs. I use my debit card more regularly. I begin using the credit card more towards the month-end, as my bank balance starts going down!"

Kumar, a media professional, has a different story, "I use the card as much as possible — for anything and everything — books, kitchenware, personal accessories, shoes, clothes for myself and family. In fact, I use it for any purchase over the minimum limit of Rs 250 that some merchants insist upon. I have probably not used the card only for doctors' fees. Using the card saves me unnecessary trips to the bank. Two, I get some bonus points for every Rs 100 spent which I can redeem for some gifts."

His wife has a card too but most household expenses and shopping payments get loaded on his card, he says. "I prefer to have it consolidated on one card, than having to check two-three statements."

Picture by A. Roy Chowdhury

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