Here's What February Told Us About 2026
If you've been using your credit cards the same way you did last year, this might be the week that catches you off guard.The first week of February brought a wave of quiet but meaningful shifts across major Indian card issuers changes that signal where the market is really headed in 2026.
What Actually Happened This Week
HDFC Bank and ICICI Bank users reported revised reward structures on UPI-linked spends, utility payments, and wallet-based transactions. Categories that earned reward points in 2025 are now being reassessed and in some cases, excluded.
Axis Bank and SBI Card holders flagged tighter monthly caps and higher milestone thresholds, especially on mid-tier and cashback-focused products. The math that worked last quarter may no longer add up.
On the infrastructure side, UPI-on-credit continues to scale but with sharper guardrails. More merchants are onboarded, yet not every UPI transaction qualifies for rewards.
Merchant category codes (MCC) and payment routing now directly impact earnings.
The Bigger Shift: Profitability Over Volume
What ties these changes together? A clear pivot toward profitability-first card design. Banks are no longer rewarding swipe volume for its own sake. Instead, they're optimizing for sustainable, intentional usage and rewarding customers who engage strategically, not habitually. We think this was on the cards( pun intended ) ,this isn't devaluation, it's recalibration and it changes how we should think about credit cards in 2026.
Why This Matters to You
Credit cards are no longer passive tools in your wallet. They're active financial instruments that require deliberate strategy.
One-card-for-everything strategies are losing ground.
Reward logic now varies by merchant, transaction type, and spending category.
Optimization beats ownership having the right card matters less than using it the right way.
The winners in 2026 won't be those with the most cards. They'll be the ones who understand how each card earns, where it caps out, and when to switch.
FLIP's Take
So far this year has been on the mantra of optimization beats ownership.The credit card landscape is evolving faster than most users are trying to stay ahead which means staying informed. That's exactly why we created FLIP.
Every week, we break down the moves that matter: issuer changes, reward structures, payment trends, and strategic insights you won't find in fine print.
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