Last September, card transactions stood at Rs.40, 130 crore. While September 2017 recorded card transactions at Rs.74, 090 crore, a staggering rise of 84%. The volume of transactions recorded at points of sale also showed an increase of 86%. Last year this amount stood at 203 million transactions, while this year it rose to 378 million.
This was speculated to be due to the demonetisation of currency late last year. People were forced to use digital modes of payments, as opposed to cash, in spite of adequate cash flushed back into the economy. The total number of cards in the economy was 853 million as of September this year. Out of this, close to 820 million were debit cards, and the remaining were credit cards.
The growth of card transactions post demonetisation has been averaging at 22%. Furthermore, online digital payment platforms have also seen a rise in business subsequent to demonetisation. The RBI had stated that digital transactions increased by 31% from the time of demonetisation; last November, to September of this year. The rate at which digital payments grew from 20 – 30% to over 45%. Up until September, the digital transactions on UPI (Unified Payments Interface) increased by 85% in one month. This is also speculated to be associated with the increase in smartphone usage and the more affordable data plans, a survey said.