Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
RSS

News

Digital payments up, debit card use declines: Report

Author: IANS/Monday, September 25, 2017/Categories: Digital payments

Digital payments up, debit card use declines: Report

Mumbai, Sep 25 - Investment banking firm Jefferies has said there is growth in digital payment mode by bank customers post-demonetisation whereas there has been a decline in usage of debit cards.

In a report, Jefferies also said the RuPay adoption for e-commerce has increased while the growth of credit cards has been secular.

The National Electronic Funds Transfer (NEFT) volumes have grown upwards of 30% with a further around 10% improvement in per-transaction size, resulting in around 40% growth by value, it said.

Similarly, the Immediate Payment Service (IMPS) is showing stellar growth on a smaller base.

"While growth has come off low base, it still continues to grow at 100%-plus. Instant payment, with ease of choosing the receiver and its 24x7 availability makes it a very useful and attractive payment system," Jefferies said.

According to the report, the usage of debit card has been weak and the total debit card transactions have seen a modest decline -- both in terms of value and volume.

"Card swipes are growing at sub-10% with no change in ticket size resulting in sub-10% growth in transaction value after a sudden spike during demonetisation."

"It would, therefore, seem logical that a remonetised banking system has started seeing more cash-based transactions and the debit card is losing out," Jefferies said.

On the other hand, the Unified Payment Interface (UPI) has seen a reasonable pick up with the government promoter BHIM mobile app (payment app) continuing to show a healthy growth in volumes.

RuPay adoption for e-commerce is fairly encouraging, according to Jefferies. RuPay is the domestic card payment system (similar to Visa and Mastercard).

"Total monthly spends have nearly tripled since demonetisation for transactions over POS (point of sale) while e-commerce spends have more than doubled. Considering RuPay cards were mostly provided during the financial inclusion drive, such trends are very encouraging."

Meanwhile, credit cards have seen a secular growth. Card spends have increased to 40%-plus with a similar improvement in total transactions.

"Card outstanding contributes a fair degree of uplift to the overall unsecured loans within the retail portfolio. However, the revolver rates across banks continues to be flat and hence don't signify any immediate risk to default situation in this segment," Jefferies said.

The central government had on November 8, 2016, announced the demonetisation of the Rs 500 and Rs 1,000 currency notes.

Print Rate this article:
No rating

Number of views (184)/Comments (0)

rajyashree guha

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free