Axis Magnus How much devaluation would still make Magnus competitive?

[Cardmarvel]

With so much buzz and near consensus on upcoming Magnus devaluation, I would like to discuss how much devaluation is acceptable to keep Magnus slightly ahead of the competition

Of course a lot would depend on which card Axis Magnus wants to compete with. I think the only card that comes anywhere close to Magnus is Infinia and surely Magnus is currently way better than Infinia in many regards.

Let’s assume for a moment that Magnus would no longer allow government spends for earning rewards as well as milestone benefits. That brings they on the same level on that count

If we leave aside intangible benefits such as Golf privileges (Infinia wins), Priority Pass (Infinia wins), Meet and Greet (Magnus wins), BMS (Magnus wins) etc and only focus on rewards, cash or otherwise, at what point Magnus will become unattractive as compared to Infinia?
Infinia has 3.3% reward ratio and these reward points can be converted into 1.7% cash for vouchers or 3.3% cash for hotels and flight bookings. Magnus’s conversion to cash is pretty low 5 ER = 1 Rs. So even with 6% reward ratio, the cash conversion is just 1.2% and even on TravelEdge the conversion for hotel and flight booking is just 1.2%.

The cash benefits only go up to 6% when you consider monthly milestone. Assuming hitting monthly milestone is not possible every month, even with 25k milestone bonus, I would rate Infinia and Magnus near same.

The big differential for Magnus is the miles conversion ratio for otherwise much cheaper ER points. But at 5:1 it will significantly devalue as compared to Infinia. At 5:2 they probably become somewhat similar or Magnus gets slightly better when you consider 25k milestone points. But at 5:3, Magnus will beat Infinia handsomely.

I will happily settle with Magnus at 5:3, but at 5:1, I will go back to Infinia. At 5:2, there would be a tie 😊

What do you guys think?

 

[WhoU]

Par ye khayali pulao banana kyu hai?

I mean it’s pretty much confirmed that the devaluation will happen. What’s the point of this thread?

 

[Cardmarvel]

Par ye khayali pulao banana kyu hai?

I mean it’s pretty much confirmed that the devaluation will happen. What’s the point of this thread?

Nothing is confirmed until it’s confirmed 😃

 

[Vaastav]

Par ye khayali pulao banana kyu hai?

I mean it’s pretty much confirmed that the devaluation will happen. What’s the point of this thread?

 

[Cardmarvel]

Hehe I have no regrets. I earned nearly 6L ER points on two Magnus cards in the last 1 year. Before that I earned 3L points on two Infinia cards 😀 This is without making any unnecessary or business expenses just for the sake of earning points

At 5:1 I go back to Infinia. At 5:3 I stay with Magnus.

 

[imdjay]

I think all these posts should be moved to the VIP lounge. It doesn't make sense to have it in the Cards Section.

 

[VGisHere]

5:3 Conversion
At least 5k renewal voucher OR 1 economy domestic flight voucher

 

[Deleted member 9785]

I have DCB + Infinia in the house as well. I still feel magnus is better and i will keep it . Anyhow i have reached 15 lac for fees waiver

 

[CARDBITRAGE]

Hehe I have no regrets. I earned nearly 6L ER points on two Magnus cards in the last 1 year. Before that I earned 3L points on two Infinia cards 😀 This is without making any unnecessary or business expenses just for the sake of earning points

At 5:1 I go back to Infinia. At 5:3 I stay with Magnus.

As you mentioned, 5:3 would’ve been a sweet spot. At 5:2 I would’ve kept the card. With 5:1 there’s no point using the card after hitting 1L/month. So for the fee waiver, I need to spend 3L at a meagre 1.2% return.

 

[CMG]

And Reserve would compete with SBI Aurum @5:1

 

[CARDBITRAGE]

It would've been stupid on their part not to devalue Reserve though. People would just keep both Magnus and Reserve and transfer ER to points using their Reserve. This would defeat the whole purpose of deval. XD

 

[Deleted member 9785]

It would've been stupid on their part not to devalue Reserve though. People would just keep both Magnus and Reserve and transfer ER to points using their Reserve. This would defeat the whole purpose of deval. XD

Yes they can keep ratio the same, but increase the points earned further on reserve per 200 rs

 

[ANewUser]

Yes they can keep ratio the same, but increase the points earned further on reserve per 200 rs

They can't do that
If they keep same conversion ratio and increase ER earned, they will have to increase ER on Reserve on 200 spend from 15 ER to 60 ER, so that after ratio changes it still converts to 12 miles. That would mean 12% converted to cash at 0.2 rupee per ER which will make it best card in the world and therefore unsustainable.

 

[CMG]

They need to bring segregation or another Edge category for reserve like LuxeEdge or something.

 

[Cardmarvel]

It would've been stupid on their part not to devalue Reserve though. People would just keep both Magnus and Reserve and transfer ER to points using their Reserve. This would defeat the whole purpose of deval. XD

Getting reserve is not as easy as Magnus. So they could still keep Reserve's ratio better than Magnus and try to compete with Infinia. Note that on Gftr Infinia's reward rate is 15-20% with their 5x multiplier and nearly 1:1 conversion for points. Magnus doesn't come close with 5:1 ratio, even with 5x multiplier. The monthly milestone kinda makes up for the deficit, but given a choice I would take Infinia's 15-20% because the points come early, predictably and I don't have to worry about hitting monthly milestone. So if Magnus is really devalued to 5:1, then their only hope to compete with Infinia is to make Reserve a bit more affordable and keep ratio at 5:2 or charge 50k annual fees but keep ratio 5:3.

 

[CARDBITRAGE]

Getting reserve is not as easy as Magnus. So they could still keep Reserve's ratio better than Magnus and try to compete with Infinia. Note that on Gftr Infinia's reward rate is 15-20% with their 5x multiplier and nearly 1:1 conversion for points. Magnus doesn't come close with 5:1 ratio, even with 5x multiplier. The monthly milestone kinda makes up for the deficit, but given a choice I would take Infinia's 15-20% because the points come early, predictably and I don't have to worry about hitting monthly milestone. So if Magnus is really devalued to 5:1, then their only hope to compete with Infinia is to make Reserve a bit more affordable and keep ratio at 5:2 or charge 50k annual fees but keep ratio 5:3.

Reserve is just as easy via C2C. Again, by keeping the ratio better on Reserve, people would use Magnus as a surrogate to transfer points using reserve. After all the losses, they can't afford to do that.
In its current state, Magnus won't beat Infinia. As you mentioned, the inconvenience of waiting for ER is something that is a huge letdown. They should work on their infrastructure pertaining to this. They have a lot of work ahead of themselves now. I hope they launch a new product altogether.

 

[Cardmarvel]

Reserve is just as easy via C2C. Again, by keeping the ratio better on Reserve, people would use Magnus as a surrogate to transfer points using reserve.

I think they will find a way to segregate ERs based on the cards soon. They haven't credited even base ERs for my Samsung Infinite card for more than a month now and I suspect they are delaying it so that they can somehow limit earnings to non-HNI category. Let's see how that goes.

 

[rahulsethi]

Nothing is confirmed until it’s confirmed 😃

He was ahead of his time

 

[rogerthat]

Now that Gyftr and Grab Deals are devalued, these conditions are to be true for me to keep the card.

• If there is a full renewal benefit, atleast 2:1 miles transfer ratio
• If there is no renewal benefit, atleast 5:3 miles transfer ratio
• If 25k milestone benefit goes, the transfer ratio has to remain 5:4.

5:2 is way too less, sorry. That still gives only 2.4% return for a Rs.11800 card.

 

[Deleted member 9785]

My 2 cents based on the drama of last two weeks

1) Axis team is clueless and nobody can predict the extent of devaluation. But, gyftr and grabdeal devaluation has already happened
2) Maybe they calculating the extent of cash burn after these two devaluation and the reduction in gamification of spends
3) Probably based on the latest cash burn rates, they will decide how much conversion ratio to decide and milestone benefits too

All in all this is a show of complete incompetence and forecasting for card team at Axis.

But people are also now spending too much time on this topic. This is just a credit card which has lost its sheen and will continue

Lets focus on our lives . Only cc influencers are making money with all this interactions and high attention