SBI Cards & Payment Services Limited

1. Amex has completely different model from SBI Cards as the spread is completely different between the two making Amex much more profitable.

2. Amex has moat through its marketing & customer service due to which customers are very sticky.

3. Basic issue is currently with the increasing use of UPI we are becoming less reliant on credit cards except for big ticket purchases(ex: TV, Mobile, Refrigerator)
   a. Merchant try to charge the discount rate from customer itself when paying from credit card then we pay from any credit card.

Any credit card makes money

1. With the consumers making more transactions through credit card (industry standard discount rate is 1% while for Amex it is 3%)
2. AMC charges which is quite low in case of SBI Card
3. Revolving rate