Economy going cashless, card payments increased by 27% in 1 year

Ahmedabad, 26 January 2023

Cashless payment and payment through card is increasing in the country. Last year, the number of card payments in the country increased by 27%. According to a global data, it is estimated that card usage will increase by 18.7% per year in the next four years. According to a research, by the year 2026, the number of card payments in the country will reach about 44 lakh crore rupees.

According to a data analysis of card payments, card payments in India have increased by 26.7% in the year 2022. The reason for the growing electronic payments among the general public is the improvement in cashless payments and payment infrastructure. A continuous increase in cashless payments is being seen since the time of Corona. However, even after Corona, the currency of payment through cash or card is continuously increasing. With the government also giving more importance to UPI and electronic payments, the currency of card swipes has increased.

Credit card use also increased:

According to a data, only 6.3% of every 100 people have a credit card in the year 2022 but its contribution to the total card payments has been around 63%. On the other hand, 70% of every 100 people have a debit card, but the number of payments made through it is only 36.8%. Which means that the use of credit cards has increased more than debit cards.

RBI's PIDF also benefited from:

The Reserve Bank created the Payment Infrastructure Development Fund PIDF in January 2021 to expand payments infrastructure by subsidizing merchants on the use of point-of-sale terminals and installing QR codes. Under which a subsidy of up to 30-50% was given for POS terminals and 50-70% for QR codes.