Not debit card, now people are preferring UPI for digital payment

Unified Payments Interface (UPI) has made transactions easier. Indian consumers are preferring to use it as compared to debit card payment. According to an ET report, UPI is fast emerging as the preferred payment mode for both in-store shopping and peer-to-peer transactions, relegating debit cards to a secondary role. When it comes to online shopping on e-commerce, UPI has accelerated the decline of debit cards.

Debit card usage for e-commerce websites fell by more than half in September to 51 million payments, Reserve Bank of India data shows. The number of transactions in April last year was 117 million. The amount paid through debit cards fell 23% from Rs 21,000 crore in April 2022 to Rs 16,127 crore in September this year. At the same time, UPI payments made specifically to merchants increased almost three times in September 2023.

Increase in credit card transactions

Credit card transactions in e-commerce increased by 22 percent to 13.1 crore in September this year, from 10.7 crore in April last year. Talking about the amount, during this period it increased from Rs 65,652 crore to Rs 92,878 crore.