Increased trend of easy electronic payment: economy becoming cashless
Increased trend of easy electronic payment: economy becoming cashless, card payment increased by 27% in 1 year
The trend of card payment is increasing rapidly in the country. Last year, card payments in the country increased by about 27%. GlobalData estimates that it will grow at a rate of 18.7% annually over the next four years. According to Data and Analytics Company, by 2026, payment through cards in the country will reach Rs 43.3 lakh crore.
According to Global Data's Payment Card Analytics, the value of card payments in India will grow by 26.7% in 2022. The growing trend of electronic payment among common people and improvement in payment infrastructure is the main reason for this. Card payments were made on a large scale last year amid a surge in consumer spending following the lifting of Covid-related restrictions. Analyst Kartik Chhalla said, “Electronic payments have grown rapidly in recent years. The government has also been supporting electronic payment through card swipes, UPI or the internet.
According to global data, in 2022 only 6.3 out of every 100 people have credit cards and charge cards. But their share in total card payments was 63.2%. On the other hand, 71.7 out of every 100 people have debit cards, but their share in total card payments stood at 36.8%. This means that more is being spent through credit cards.
The Reserve Bank created the Payment Infrastructure Development Fund (PIDF) in January 2021. Through this, payment infrastructure was expanded by giving subsidies to merchants on the installation of POS (Point of Sale) terminals and QR codes. Under this, merchants in Tier 3-6 cities were given a 30-50% subsidy for POS terminals and a 50-75% subsidy for QR codes.