The use of credit cards has risen, according to data released by the Reserve Bank of India. The central bank stated that Rs.59,900 crore is now owed to banks due to an increase in the use of credit.
This is a rise of close to 77% compared to data released in 2015. The demonetisation policy adopted by the government is cited as a reason behind the sudden spike.
An increase in the number of credit cards has also been recorded, with 32.65 million cards in use till August 2017 compared to 26.39 million in August 2016.
8 November 2017
A recently released RBI survey claims that there has been a noticeable drop in the percentage of using credit cards on PoS terminals. More Indians seem to prefer shopping with their debit cards. In August 2013, credit card transactions constituted around 43% of total PoS transactions of 9.83 crore. This figure came down to 42.75% in August 2014, to 39% in the year 2015. In August 2017, the number of credit card swipes on PoS dropped to as low as 30% of the total PoS transactions of 38.07 crore. However, data also claims that Indians prefer using credit cards for high-end purchases.
The number of credit card transactions are less than debit cards, they still constitute about half (50.6%) of transactions in terms of total amount swiped. In August 2017, Indians purchased goods worth Rs.71,710 crore at merchant outlets. Out of this, Rs.36,298.80 crore goods were purchased via credit cards. Hence, the average ticket size of purchase using credit cards in one transaction at Rs.3,148, and Rs.1,334 for debit cards.
Vijay Jasuga, CEO, SEBI Cards, informed that when it comes to credit cards, Indians plan their purchases. If they want to buy a high-end electronic device using their credit card. For everyday use, they prefer to swipe their debit cards, he added.
6 November 2017
Giving a neck-to-neck competition to State Bank of India, Axis Bank too has taken initiative in integrating NFC technology in credit and debit cards and advance 50,000 point of transaction terminals to support the 'tap and pay' feature. Statistics show that more than 60 percent of current online transactions using bank cards are below INR. 2000. ‘Tap & pay’ will effectively tap this trend.
Axis bank agrees wholeheartedly with the RBI's step to ease the two-factor verification norms for NFC based disbursements below INR. 2000, calling it a revolutionary move. This can modernize small-ticket deals in India and can aid digitalization in payment. Axis Bank is dedicated to catalysing this initiative by facilitating a good number of trade terminals for NFC, as well as issuing NFC cards.
19th May 2015
According to AK Manocha, the CMD of IRCTC, foreign citizens and non-resident Indians (NRIs) will now be able to book e-tickets on the IRCTC website using their international credit and debit cards. Until now, the IRCTC portal allowed booking of tickets only through an American Express International Credit Card, where the payment was carried out via the AMEX payment gateway.
17th May 2016
Axis bank opened its first Express Branch in ITPL, Bengaluru for providing round-the-clock banking experience to its customers. These branches would be essentially located in technology parks, offices or malls, offering the customers 24X7 banking services. Instant withdrawals, internet banking, account opening, instant cash deposits will all be possible from these Express branches.
The Express branches would have an ATM machine, a cheque deposit kiosk, two recyclers and two speed banking kiosks. These Express branches will be equipped with 10 inch tabs which would provide options for opening savings accounts and credit card accounts. With so many options on board, these Express branches will surely make the banking experience, even easier and convenient.
11th May 2015
According to the CEO of SBI cards, Vijay Jasuja, the sales of credit cards is getting a huge boost due to the increasing popularity of e-commerce in the country. Vijay revealed that the boom in the e-commerce sector has lent great push to the sales of credit card especially in the tier 2 and 3 cities. For example, in case of SBI credit cards, half of the spends that get recorded are made online. This is so when till two years ago, online spends did not even make one-fourth of the total SBI credit card spends.
The use of plastic money and the growth of non-cash transactions is growing continuously and so is the use of wallets like PayU Money, Paytm etc. Although the use of wallets has cut into the growth of credit cards, it has not hurt the same, too badly.
10th May 2016
Paying small traffic fines will become much more convenient and transparent with the new online system. After a traffic violation such as no seat belt, talking on the mobile while driving or speeding, a defaulter need not pay the fine immediately, or visit the police station to clear the dues. Instead, a profile will be set up in the name of the defaulter on the online national register. The register is held by the Union ministry of road transport and highways. An e-challan will be recorded and issued in the name of the defaulter. The person can then log on to the website and pay it online using the unique identification number which can be found on the challan receipt. The defaulter can enter this number and the profile will appear with the history of traffic violations associated with the same name. Once the new system confers to the RBI guidelines, people will be able to pay fines using their credit cards, debit cards and netbanking.
he website will be launched in Noida and Lucknow with a 3-day trial of the app. In case a defaulter fails to pay the challan online, a subsequent violation at any part of the country can result in a cancellation of the driving licence or registration.
2nd May 2016
Taking convenience a step further, Delhi Metro commuters can now recharge their Metro cards using the Paytm app. currently, this facility is available through the Delhi Metro website. This is the second inclusion for Paytm as it already allows Mumbai Metro users to recharge their cards. ICICI Bank has partnered with Delhi Metro to introduce ICICI Bank Unifare Cards, which are co-branded credit cards and debit cards. This card can also work like a Delhi Metro Smart Card. Another app, Ridlr also allows bus commuters to pay for their fares using Citrus Cash wallets. The Ridlr app works via bluetooth / wireless technology through the bus conductor’s mobile phone.
26th April 2016
Flipkart launched Flipkart Money, an e-wallet that will give users a new payment method. It will also help cut costs of significant amounts for handling cash on returned products. With Paytm, Freecharge and MobiKwik enticing millions of users with cashbacks and discounts, the market is fresh and abundant. Though these companies mainly focus on recharges and bill payments, they offer up a number of other services.
The wallet is available on the company’s android app. A user can have a maximum balance of Rs. 10,000. In a month, users can top up the Flipkart Money Wallet with a maximum of Rs. 25,000. Top ups can be done using net banking, debit card or credit card. Cash in the wallet can be withdrawn to cards or bank accounts. The digital wallet will appear on the payment platform for customers to make payments on Flipkart.
These wallets will possibly help Flipkart deliver quick refunds and reduce refunds in cash on delivery payments. COD currently accounts for a majority of its transactions. By March 31st, Flipkart aims to sell goods worth Rs. 12 billion. An average of 15% of ecommerce products are returned. So the e-wallet might change big numbers for Flipkart. The wallet will also enable the company to offer cash backs rather than discounts. This will help keep customers coming back and making routine purchases.
6th April 2016
The Indian Railways plans to implement ticket sales through hand-held terminals. This would greatly benefit the travelers who commute to the suburbs and short distances. There will be various “Points of Sale” which will not require much infrastructure. The Indian Railways also plans to sell platform tickets through vending machines. Travelers will be able to purchase tickets with cash, debit cards and credit cards.
The e-ticketing facility will also be opened up to foreign credit cards and debit cards to cater to NRIs and foreign tourists. This should be rolled out in the next 3 months. Journalists also stand to benefit with the introduction of e-booking of tickets on concessional passes.
A new process of PRS ticket cancellation has been proposed where customers can reach out through the 139 helpline, use a one-time password sent to their registered mobile, and make the cancellation.
Scanners, access control and bar-coded tickets will also be introduced at major stations to reduce or eliminate stowaways.
28th March 2016
Uber Technologies, the cab dispatch company based in San Francisco, is set to launch a new digital wallet in India. This digital wallet will be a closed one wherein payments can only be made towards Uber cab fare. The mode of payment generally accepted by Uber are cash payments and credit card payments. Currently, Uber also accepts payments through Digital Wallets such as Airtel Money and Paytm. Uber was motivated to launch its own digital wallet due to the RBI mandate that all credit card payments should go through the 2-step process for validation and securing the transaction.
21st March 2016
After the pioneering Airtel, with its innovative Airtel Money concept, followed by Vodafone (m-pesa), Paytm, MobiKwik and Oxigen, it’s the turn of major commercial banks to jump into the mobile payments fray. HDFC bank is leading the charge with Chillr, a third party app platform that facilitates the transaction of money to anyone on the sender’s phone address book- a feature limited to just HDFC bank accounts for now, but expected to cover other bank accounts soon. Meanwhile, ICICI Bank launched the Pockets app last month- an online wallet in the likeness of MobiKwik or Paytm. The number of mobile payment users in India has also improved dramatically, standing in at 45 million users, almost twice the number of credit card users in India. The remarkable ease of money transfer, prospective acceptance of this payment by the bulk of small retailers across India and importantly, the ready acceptance of these online options by the target Indian audience has boosted HDFC and ICICI’s investment in this segment, and is likely to draw in more players, sooner than later.
18th March 2016
The Indian government has proposed various schemes and incentives to credit card holders, in a move to promote the Digital India Scheme proposed by Prime Minister Narendra Modi. This scheme aims to control and restrict the flow of black money in the economy by using only cards and other modes of digital payment to make purchases. It is believed that the government will introduce and implement these benefits attached to credit card transactions and digital transactions soon, so as to realize the goal of a cashless economy.
15th March 2016
Snapdeal, India’s leading e-tailer has entered into an agreement with HDFC Bank to launch a co-branded credit card, the first of its kind in the country. This card is expected to hit the market in the next 4 to 6 weeks.
The co-branded card is primarily targeted at tier-III and IV towns, where the penetration of credit cards is considerably low when compared to the cities and metros. This arrangement is likely to benefit thousands of customers across the country by means of exclusive offers & loyalty points.
Jasper InfoTech, the holding company of Snapdeal has been pioneering a number of initiatives in the financial services space. In mid-2014, this online marketplace giant had launched Capital Assist, a mechanism that helps its sellers in meeting the working capital requirements as they grow on the Snapdeal platform.
11th March 2016
Prime Minister Narendra Modi, at the recently held Delhi Economics Conclave hinted that the dominance of MasterCard and Visa could be put to an end with RuPay cards. Promoted by the National Payments Corporation of India (NPCI), RuPay cards are all set to overtake Visa and Mastercards in the debit cards and credit cards space in india. RuPay, which was rolled out in 2012, now contribute 36% of debit cards in India which shows a colossal growth. Jan Dhan Yojana schemes also played a key role in popularizing RuPay cards as out of 222 RuPay cards in circulation, 170 million are linked to Jan Dhan accounts. RuPay cards also have about one thirds of market share in transactions and about 2 million transactions are carried out everyday using the card.
While Visa and MasterCard charge about Rs.3 for every e-commerce and point of sale transactions, RuPay charges 90 paise only. It is also important to note that over 170 million RuPay credit cards and debit cards were rolled out in a period of one year under PMJDY schemes and Mudra cards were rolled out in under 6 months. With soaring growth rate and millions of new users every day, it will be no surprise if RuPay cards overtake MasterCard and Visa in coming years.
09th December 2015