Credit card and Debit card transaction downfall in 2020
As per the report of RBI, the number of debit card swipes has increased rather than credit card during this pandemic situation. There has been a deduction of 17% credit card swipes in 2020 if compared to 2019.
In the words of Ravi Goyal, managing director of AGS Transact Technologies, a Mumbai-based digital payments company, “Transactions are definitely growing from the Covid-19 induced shock in March and April, but overall numbers are still low. Interestingly, now we see more debit card transactions compared to credit card transactions”.
As per the comparison between credit card and debit card transaction, the debit card transactions also detreated in 2020 if compared to 2019, but it was more than credit card proceedings. This means, the consumers are saving more for uncertain times. In the month of September, 35 crores debit card swipes were noted in merchant locations, it means there has been a lessening of 14.6% from 41 crore dealings previous year. So, credit card and debit card transaction both are detreated in 2020 .
Credit cards were widely used for holiday bookings, dine outs etc. which were not there this year, this can be a possible reason for declined transactions via credit card. So, credit card and debit card transactions both are detreated in 2020 .
For the last months of this year, as the lockdown lifted itself, the economic condition improved a bit, debit card swipes at offline market have increased to around 19%. On the part of credit cards, it has been 22% growth in offline market. The reports are by RBI.
The only payment which has lighted the show is Unified Payments Interface (UPI). UPI has noted that the transaction is around 207 crore. The bulk UPI dealings are in between person and not merchant transactions.
Steering clear of credit
A specific credit card report shows that in the month of September, it was Rs. 50,139 which are settled at merchant outlets, which was Rs.59,453 the previous year. This number was Rs. 50,319 crore in the month of August while it was Rs.59,601 in the same month a year ago. Credit card and debit card transactions both are detreated in 2020 .
The debit card transactions have day by day improved if compared to credit card transactions. In September, Rs. 54,847 crore was dealt via debit cards whereas, Rs.50,139 crore as a part of credit cards.
In the words of Manish Patel, chief executive officer, MSwipe, a Mumbai-based payments company that deploys payment terminals at merchant outlets, “ Historically in terms of value spends credit cards are at 55 percent and debit cards are at 45 percent, this year debit card spends have been higher”.
Another big personality, Rajeev Agarwal who is the chief executive officer of Innoviti Payments, a Bengaluru-based payments company said, “One interesting thing that happened this year was EMI offers on debit cards, which was a big hit among consumers”.
Thus, we have seen how the Covid-19 phase has disturbed the economy in a whole. Due to Covid -19 credit card and debit card transaction both are detreated in 2020 . Not only this, it has it’s adverse effects even on the debit and credit cards. So, perhaps I could reach to you with the declining economy which is surrounding us. Any comment you want to share as a reader, you may do that in the comment box. Your thoughtful comment will help us grow!