Preference for credit cards increasing; demand for debit & prepaid cards down

Vijay C Roy

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Chandigarh, April 4

The popularity of credit cards in the country is on the rise as it witnessed the highest upsurge on a YoY (year-on year) basis.

According to India Digital Payments Report for H2 2023 (July to December) unveiled by Worldline, a global leader in payment services, in December 2023, credit cards witnessed the highest upsurge on a YoY basis with a growth of 21 per cent at 97.9 million. This was followed by prepaid cards with a YoY growth of 13 per cent at 325 million. Debit cards witnessed a minuscule growth of 2 per cent at 960.8 million.

21% YoY growth

• In December 2023, credit cards witnessed the highest upsurge with a YoY (year-on year) growth of 21% at 97.9 million, while prepaid cards posted a YoY growth of 13% at 325 million
• Debit cards witnessed a minuscule growth of 2% at 960.8 million

Of the total, 71 per cent of credit cards were issued by private sector banks and 24 per cent by public sector banks, while 65 per cent of debit cards were issued by public sector banks and 24 per cent by private sector banks.

In contrast to card issuance, the volume of card transactions declined. This decline was predominantly propelled by debit card transactions, whereas credit card transactions experienced an upswing.

Debit card transactions in H2 2023(July to December) were recorded at 1.15 billion witnessing a decline of 34 per cent YoY. Credit card transactions on the other hand were at 1.78 billion with a YoY upsurge of 21 per cent when compared to H2 2022. In terms of value, credit card transactions was Rs 9.39 trillion, a strong rise of 11 per cent from H2 2022 while, during the same period, debit cards transaction value was Rs 3.02 trillion, a fall of 16 per cent and prepaid cards were Rs 241 billion, a fall of 30 per cent.