Pradeep Gaur/Mint
Pradeep Gaur/Mint

Credit card spends total `1.9 trillion in FY15

Consumers spent `1.9 trillion through credit cards and `1.2 trillion through debit cards

Card spends grew 28% year-on-year (y-o-y), up from 24% last year, stated a recent report by Worldline, an electronic payment services company. Consumers spent 1.9 trillion through credit cards and 1.2 trillion through debit cards. The report, India Card Payments Report for 2014-15, shows other such trends seen in the past year in the use of credit and debit cards across channels like ATM and point of sale (PoS) terminals. Here is a look at some of these trends seen in the financial year (FY) 2014-15.

Growth in base

Credit card base grew 9.8% in the past year. Alternative methods such as mobile wallets and prepaid cash cards accounted for 3% of digital transactions. Whereas the debit card base grew 40% in FY15. However, PoS terminals saw a modest rise in number. On a y-o-y basis, the increase in the number of PoS terminals has been just 6%.

Number of transactions

Debit card transactions have grown by 36.5% CAGR (compounded annual growth rate) over the past five years, while credit card transactions have grown 21%. Debit cards have seen a 30% growth y-o-y, and credit cards 23%. Debit card transactions account for 57% of total card transactions at PoS terminals.

Total expenditure

The average ticket size for credit card transactions was 3,089, up by 4.2%, while for debit card transactions it was 1,502, the same level as FY14. Spends by debit cards have grown at a 5-year CAGR of 25%, faster than credit card spends, which grew by 20%.

What was purchased

At PoS terminals, the retail sector is where consumers made the most card purchases this year. Expenditure on fashion, including apparel and lifestyle prodcuts, is 22%, down from 30% last year. With offers and co-branded cards, consumption across fuel and travel, as well as in other sectors, is also increasing.

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