Growing UPI, credit card payments show rise in consumption: Report

Consumers and merchants have grown comfortable with digital payment modes, enabling them to make more online purchases

September 12, 2022

United Payments Interface (UPI) transactions increased from INR 9.83 trillion in April to INR 10.73 trillion in August this year

Credit card spending through PoS (Point of Sale) terminals rose to INR 32,383 crore

Credit card spending on e-commerce platforms rose to INR 55,264 crore

Over the last few months, the credit card industry has seen monthly spends crossing the INR 1 trillion mark consistently

An increase in payments for UPI and credit cards is indicating a rise in consumption, according to experts, as per media reports. 

According to the Reserve Bank of India’s monthly report, UPI transactions increased from INR 9.83 trillion in April to INR 10.73 trillion in August this year. On the other hand, credit card spending through PoS (Point of Sale) terminals, rose to INR 32,383 crore in August 2022, from INR 29,988 crore in April this year. Similarly, credit card spending on e-commerce platforms rose to INR 55,264 crore in August, from INR 51,375 crore in April this year.

Experts said that a robust consumption pattern is being observed due to an increase in credit card adoption. Over the last few months, the credit card industry has seen monthly spends crossing the INR 1 trillion mark consistently as consumers and merchants have grown comfortable with digital payment modes, enabling them to make more online purchases. 

Such trends add to the country’s economic revival, and the rise in UPI transactions bodes well for the economy, said the experts.
Source: LiveMint