Like the western countries, the number of borrowers is increasing rapidly in the country. The effect of this is that the number of credit card holders in the country has increased rapidly in the last few years. The number of credit card holders in the country has more than doubled in the last five years. According to Statista data, the number of credit card holders in India was 2.98 crore in FY17 which increased to Rs 6.2 crore in FY21.
Transactions cross 8 lakh crore: According to Worldline India, an organization tracking digital payments in India, spending through credit cards in the country has increased by 12 percent compared to last year. During the full year 2021, there were a total of 2.14 billion transactions with credit cards, with a total value of about Rs 8.8 lakh crore. Out of these transactions, 1.08 billion transactions took place at Point of Sales and 1.06 billion transactions took place on e-commerce platforms. Of these, Rs 3.67 lakh crore has been paid through credit cards at sales centers while Rs 5.2 lakh crore has been paid on e-commerce platforms.
Increase in average bill: According to Worldline India, the average bill coming on a credit card in India in 2020 was around Rs 3,653 which has increased to Rs 4,122 in 2021.
Worldline India in its report said that “the number of transactions at the sales centers and e-commerce platforms are almost equal but there is a big difference in the value of both. At the same time, after Corona, credit card consumers are now preferring to use credit cards on e-commerce platforms more than in sales centers.
Debit card usage dropped by 29 per cent: While the use of credit cards and UPI is increasing rapidly in the country, the usage of debit cards is falling rapidly. According to Worldline India, there has been a decline of about 29 per cent in debit card transactions in the country in 2021 while UPI transactions have increased by 100 per cent. At present, one billion cards have been issued in the country including debit and credit cards. Of this, 93 per cent are debit and 7 per cent credit cards.