Active Stocks
Tue Apr 16 2024 15:59:30
  1. Tata Steel share price
  2. 160.05 -0.53%
  1. Infosys share price
  2. 1,414.75 -3.65%
  1. NTPC share price
  2. 359.40 -0.54%
  1. State Bank Of India share price
  2. 751.90 -0.65%
  1. HDFC Bank share price
  2. 1,509.40 0.97%
Business News/ Industry / Banking/  Credit card transactions soared 11% to 9.30 trillion between June-Dec 2023: Report
BackBack

Credit card transactions soared 11% to ₹9.30 trillion between June-Dec 2023: Report

The UPI transactions volume between June and December 2023 increased to 65.77 billion
  • The number of debit card transactions in the second half of 2023 were 1.15 billion
  • India's credit card transactions were 1.78 billion between H2 2023Premium
    India's credit card transactions were 1.78 billion between H2 2023

    Amid the digital revolution era in the country, credit card transactions remained second-favourite among citizens for payments after the UPI system. Whereas, debit card payments remained sluggish. The credit card transactions saw an 11% rise between June and December 2023 in India, according to a report by Worldline.

    The number of debit card transactions in the second half of 2023 were 1.15 billion- a 34% drop against. On the other hand, credit card transactions were 1.78 billion, a 21% spike in contrast to H2 2022.

    Of the total card transactions of 12.66 trillion between June-December 2023, the payment value via credit cards accounted for 9.29 trillion (11% up from H2 2022) while the debit card transaction value stood at 3.02 trillion- a fall of 16%.

    Although the UPI transaction has begun to dominate on both Point of Sale (PoS) and online channels, credit card spending has also surged due to increased consumption of higher-value goods and services in the country, the report noted.

    Stuck at checkout? How and why online payments fail and five ways to prevent it

    Credit card and debit card issuance

    A total of 97.9 million credit cards and 960.8 million debit cards were issued in December 2023. The report underscored that 71% of credit cards were issued by private sector banks and 24% were by public sector banks. Whereas, the government-backed nabks issued 65% of the debit cards and 24% private lenders.

    UPI- a ubiquitous payment choice

    The UPI transactions volume between June and December 2023 increased to 65.77 billion as compared to 42.09 billion in the same period in 2022.

    The value of transactions also increased by 44% from 69.36 trillion (H2 2022) to 99.68 trillion (H2 2023).

    Reform the UPI system: We need sustainable digital payments infrastructure

    PhonePe, Google Pay, and Paytm remained the dominant players in the UPI system. The three applications accounted for 95.4% of all transactions compared to 94.8% in 2022.

    Mobile payments in India

    The mobile payments, which are transactions done by mobile phone apps, have also seen a solid growth. The volume of mobile transactions from June to December 2023 was 62.95 billion compared to 45.58 billion in the same period in 2022. The value of mobile transactions in H2 2023 was 152.33 trillion.

    From Cash to UPI: How evolution of digital India fueled online payments?

    "UPI maintains its position as the uncontested frontrunner, buoyed by substantial expansion in mobile transactions. This trend underscores users' growing confidence and familiarity with smartphone-based payment methods. The proliferation of Point of Sale terminals has reached unprecedented levels, concurrent with the ascendance of mobile payments as a dominant transaction avenue. This underscores the necessity for FinTechs to adjust to a diverse array of payment channels," Ramesh Narasimhan, CEO, Worldline said.

    Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

    ABOUT THE AUTHOR
    Mansi Jaswal
    I write about gender-related issues, women's rights, women empowerment, gender equality, women's health topics, and their wealth management. Also, profiling women who have fought all odds to make their own identities in their own rights. Before Mint, I worked at Business Today and Business Standard. I studied journalism at IIMC, Delhi. Got a story idea? Email me at mansi.jaswal@htdigital.in
    Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
    More Less
    Published: 03 Apr 2024, 02:58 PM IST
    Next Story footLogo
    Recommended For You
    Banking Stocks
    ₹1,058.55-0.54%
    ₹1,494.950.97%
    ₹1,078.8-1.04%
    ₹132.85-3.5%
    ₹756.85-0.65%
    Switch to the Mint app for fast and personalized news - Get App