(MENAFN- IANS) New Delhi, July 25 (IANS) Driven by the government push to promote financial inclusion and electronic payments, more and more Indian consumers are embracing card payments, along with the unified payments interface (UPI)-based digital payments surge, transforming the country's payment landscape.
With the launch of low-cost bank accounts and debit cards under the Pradhan Mantri Jan-Dhan Yojana (PMJDY) programme and reduction in merchant service fees, consumers are gradually shifting from cash to card-based payments, according to industry experts.
Latest reports mention that the India card payments market is forecast to grow by 11.3 per cent in 2024 to reach $344 billion.
The card payment value in India registered a growth of 27.1 per cent in 2022, driven by a rise in consumer spending, according to GlobalData's 'Payment Cards Analytics'.
The card payments value is expected to register a compound annual growth rate (CAGR) of 11.1 per cent between 2024 and 2028, the report mentioned.
Debit cards remain the most used cards in India, supported by the country's growing banked population.
Despite lower penetration compared to debit cards, credit and charge cards accounted for 75.7 per cent of the total card payment value in 2023.
According to analyst Ravi Sharma from GlobalData, the government's initiatives, along with the increasing consumer confidence in electronic payments, have paved the way for the growth of card payments in the country.
Another report earlier this month revealed that nearly 65 per cent of transactions by consumers in small cities and towns in the country are now digital.
According to the report by Kearney India and Amazon Pay India, UPI, digital wallets, and cards gain widespread traction as cash transactions dwindle, with digital modes making up 69 per cent of merchant transactions in the country.
According to Vikas Bansal, CEO, Amazon Pay India, with digital transactions penetrating even street vendors and smaller towns, we are at an inflection point.
The Reserve Bank of India (RBI) has also set up the Payments Infrastructure Development Fund (PIDF) to deploy one million POS devices and increase the number of merchants accepting QR code payments.
In the future, the card payments market is projected to experience significant growth, driven by improvement in payment infrastructure and the growth of the e-commerce sector.
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