Your essential roundup of what's shaking up the credit card industry | 15-21 January 2026
Hello credit card enthusiasts!
The Indian credit card landscape just got a whole lot more interesting. This week brought us zero-forex game-changers, UPI-credit integrations that blur the lines between traditional banking and fintech, and a dramatic HDFC reversal that proves customer voice matters.
Let's dive into what you need to know.
🌟 The Standout Launches
IDFC FIRST Bank Goes All-In on Travel
Their new Diamond Reserve Credit Card just raised the bar for international travelers:
Zero forex markup on overseas transactions (yes, you read that right 0%)
Up to 10% rewards on hotel bookings, 6.6% on flights
₹3,000 annual fee waived on ₹6L+ annual spend
Lifetime-valid reward points
Why this matters: Most premium cards charge 2-3.5% forex markup. IDFC is betting that zero fees will pull customers from HDFC Infinia and Axis Reserve. If you're a frequent flyer, this card just became impossible to ignore.
Google Pay Flex: Credit Cards Meet UPI
After December's announcement, Flex by Google Pay (with Axis Bank) is now rolling out nationwide:
Fully digital, lives on your smartphone
Instant approval within minutes
Pay via UPI at any QR code
Rewards redeemable instantly (no more waiting till month-end)
The big picture: With 7.2 billion UPI transactions in October 2025, Google Pay isn't just entering the credit card space it's potentially revolutionizing it. Traditional banks, take note.
⚠️ The Policy Shake-Ups
ICICI Tightens the Screws (Effective Jan 15)
Multiple changes hit cardholders this week:
Add-on cards now cost ₹3,500/year on premium cards
Gaming and wallet transactions attract 2% fee
BookMyShow offers now require ₹50,000 quarterly spend
Translation: ICICI is plugging revenue leaks, but mid-tier cardholders might start shopping around.
The HDFC Infinia Moment:
Here's what happened in those 48 hours:
Jan 15: HDFC announces Infinia rewards cut from 16.7% to 10%
Jan 16: Customer backlash erupts across social media
Jan 17: HDFC completely reverses the decision
The lesson: Premium cardholders won't accept reward devaluations quietly. Banks that try to slash benefits without clear communication risk serious reputational damage.
SBI Restructures Lounge Access (Effective Jan 10)
Cards now split into Set A (premium) and Set B (mid-tier) with different access levels. More transparency, but some cardholders lose previously unrestricted access.
📊 What This Means for the Industry
UPI integration is the new battleground. Credit card are becoming payment methods for everyday UPI transactions not just big-ticket purchases.
Premium travel cards are heating up. Zero-forex fees were once rare. Now IDFC is making them mainstream, forcing competitors to either match or differentiate on other benefits.
Reward rationalization is here. Despite the Infinia reversal, banks are clearly reassessing generous reward structures. Expect more changes hopefully with better customer communication.
Customer sentiment drives decisions. HDFC's quick U-turn proves that in the age of social media, customer backlash can force billion-dollar banks to pivot overnight.
💡 Our Take
The Indian credit card market is maturing fast. We're seeing:
Fintechs democratizing credit access
Premium cards competing fiercely on travel benefits
Traditional players struggling to balance profitability with customer expectations
UPI becoming the universal payment rail that connects everything
For consumers, this is fantastic news more choice, better features, and proof that your voice matters.For the industry, it's a wake-up call: innovate or get left behind.
What surprised you most this week? Drop your thoughts in the comments. And if you found this useful, hit that share button let's keep the credit card community informed.
Stay smart with your swipes,
The PayByFlip Team