According to the data from the Reserve Bank of India, Credit card transactions surpassed debit card usage in India with credit card debit usage in April 2023.
By Crox Times Desk: After the UPI Transactions integration, the number of credit card transactions has surpassed debit card usage in India. Recent data given by the Reserve Bank of India showed a great rise in credit card transactions. Credit Card use has overtaken debit use in April of this year. When compared to debit cards, credit card transactions had a total value of 1.33 Crore as opposed to INR 53,000 Crore. These include purchases from e-commerce and physical outlets of shopping.
The increase in Credit Card usage in India witnessed a sudden transformation in the country’s digital payments landscape. This shift is driven by multiple factors.
Factors behind the increase in Credit Card transactions
First of all, the significant credit increase in credit card transactions, both in terms of value and volume. This is due to high acceptance by online and offline merchants.
With the rise of UPI has impacted debit card usage and the immense growth of the credit card ecosystem increases as people are accepting it widely as there are several benefits associated with them.
Consumers use credit to manage their expenses. The 48-day interest period enables consumers to make sure that they have liquid cash to satisfy their current needs and shift their expenses to credit cards.
Users of credit cards typically spend twice as much as do offline, this indicates that they prefer the protection that credit cards are now providing while making relevant purchases.
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