Debit card payments are now stagnant because of the deluge in digital transactions after the COVID-19 pandemic and its biggest competitor UPI (Unified Payments Interface). UPI is now the biggest online payment method in India.
UPI is the most popular and likable payment method because of its simplicity and ability to transfer small amounts without any extra fees.
According to the data from RBI in July 2023, Debit card spending in India was around Rs 3.15 trillion as compared to Rs 2.81 trillion in the year 2020 there’s around 11.96% growth in Debit card spending.
However, The UPI is spending more amount, Rs 2.90 trillion to Rs 15.33 trillion in the same period with a growth rate of a solid 428%.
Sunil Rongala, senior vice-president, and head of Strategy, Innovation, and analytics, at Worldline India, said,
“The increased usage of UPI for micro-transactions due to the convenience has caused a serious dent in the debit card usage with customer preference undergoing a shift”.
In just one month UPI hit Rs 10 billion in August. However, the debit card issue is increasing due to the Pradhan Mantri Jan Dhan Yojana (PMJDY), in which scheme account holders get a debit card without any fee if they open a basic savings account.
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