For years, HSBC has occupied an unusual position in the Indian credit card market. It has never chased the scale of HDFC Bank, SBI Card, ICICI Bank or Axis Bank. Its portfolio has remained relatively compact, its sourcing conservative, and its products targeted towards affluent urban customers rather than the mass market. And then, about three years ago, the bank started building big again, just as Citi was exiting India. Since then, others have left as well, including Deutsche Bank.
Yet, over the past few weeks, HSBC has made two moves that suggest the bank is thinking much bigger about its cards business in India. One move improves the proposition for existing cardholders. The other hints at a broader strategy to drive spending through merchant-funded rewards.
Taken together, these developments indicate that HSBC is trying to become a far more meaningful player in the premium cashback and lifestyle card space.
HSBC enhances the Live+ Card
Only recently, HSBC had announced a series of changes to the HSBC Live+ Credit Card that many customers viewed as a devaluation.
Among the announced changes were the removal of cashback on international transactions, reduced domestic lounge access, and the exclusion of additional merchant categories from cashback eligibility. While the reduction in forex markup to 1.99% softened the blow, the overall sentiment among cardholders was that the card had lost some of its appeal as an everyday cashback product.
Interestingly, HSBC has now responded with what can only be described as a significant revaluation. Effective July 26, 2026, the HSBC Live+ Credit Card will receive a substantial upgrade that goes beyond simply undoing earlier cuts.
The biggest enhancement is the expansion of the 10% cashback programme. Until now, accelerated cashback was largely limited to dining, food delivery and grocery spends. Going forward, shopping and utility bill payments will also qualify for the 10% cashback programme, dramatically increasing the usefulness of the card for everyday spending. The monthly cashback cap has also been increased from INR 1,000 to INR 1,200, allowing customers to extract greater value every month without changing their spending habits.
The travel proposition gets stronger
HSBC has also strengthened the travel side of the Live+ card. Cardholders will now receive one complimentary international airport lounge visit every year. While a single lounge visit may not sound transformational, it is a meaningful addition for a card that has traditionally been positioned primarily as a cashback product.
For customers who travel internationally once or twice a year, this provides tangible additional value without requiring them to carry another premium travel card.
Perhaps even more importantly, HSBC is migrating the card onto the Visa Infinite platform.
That opens access to an entirely different ecosystem of benefits, including Visa Infinite privileges such as preferred rates on airport Meet & Assist services, selected ITC Hotels offers and Avis rental benefits. These are perks that were previously unavailable to Live+ customers and elevate the overall positioning of the product.
HSBC has also added quarterly cashback on eligible contactless fuel transactions, making the card slightly more rewarding for daily usage as well.
Whether this was always the intended rollout or whether customer feedback accelerated internal decision-making is difficult to know. What is evident, however, is that HSBC appears keen to ensure the Live+ card remains competitive in a market where cashback cards have become increasingly aggressive.
Then came the teaser
Almost simultaneously, HSBC India published an intriguing teaser on Instagram. The teaser hints at an upcoming voucher proposition for HSBC credit card customers, although the bank has not yet revealed complete details. The campaign uses the familiar “something exciting is coming” approach, asking customers to stay tuned for more information.
View this post on Instagram
While the bank has not officially disclosed what these vouchers will involve, the teaser itself is noteworthy. Banks increasingly recognise that customers don’t only evaluate credit cards on reward rates anymore. Merchant offers, instant discounts, dining benefits, shopping vouchers and curated lifestyle partnerships have become equally important drivers of spending behaviour.
Large issuers like HDFC Bank, ICICI Bank and Axis Bank regularly launch merchant-funded campaigns that encourage customers to shift incremental spending onto their cards. HSBC appears to be preparing to participate more actively in that ecosystem. Viewed together, these announcements point towards a broader strategic direction.
By expanding cashback categories, introducing Visa Infinite privileges, adding lounge access, improving fuel rewards and teasing additional voucher programmes, HSBC appears to be trying to increase engagement throughout the year rather than during isolated promotions.
A changing competitive landscape
The Indian credit card market has become significantly more competitive over the past five years.
Axis Bank has aggressively expanded its premium portfolio. HDFC Bank continues to dominate the aspirational premium card segment. American Express has strengthened Membership Rewards. SBI Card remains a volume leader, while newer fintech partnerships continue to reshape cashback products. For HSBC, simply maintaining the status quo would likely have resulted in losing relevance.
Instead, the bank seems to be investing in making its products more compelling without necessarily trying to compete purely on reward percentages. The addition of premium Visa Infinite benefits also signals an intention to position the Live+ card as more than just another cashback product.
Bottomline
HSBC has had one of the more interesting weeks in the Indian credit card market. The significant enhancement of the HSBC Live+ Credit Card demonstrates that the bank is willing to invest in improving customer value, even after announcing earlier benefit reductions. The expansion of 10% cashback categories, higher cashback caps, international lounge access and Visa Infinite privileges collectively make the card considerably more attractive than before.
At the same time, HSBC’s teaser around upcoming voucher benefits suggests the bank isn’t stopping there. While the details remain under wraps, the move indicates a broader effort to increase customer engagement through merchant-led rewards and lifestyle partnerships.
Whether this translates into a larger market share remains to be seen. But one thing is becoming increasingly clear: HSBC no longer appears content to be a niche issuer with a handful of good products. It is positioning itself to compete much more actively for wallet share among India’s premium credit card users.
What do you make of HSBC’s recent moves in the Credit Card space?
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