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Credit card spend on the e-commerce platform rose to Rs 55,264 crore in August
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The increasing use of credit cards and UPI payments is a sign of increasing consumption, industry and market experts have expressed this estimate. The figures also point to an improvement in economic activity amid the decreasing outbreak of the covid epidemic.
Unified Payment Interface (UPI) transactions rose to Rs 10.73 lakh crore in August from Rs 9.83 lakh crore in April this year, according to monthly data from the Reserve Bank of India (RBI).
Similarly, credit card spend through POS (point of sale) terminals increased to Rs 32,383 crore in August from Rs 29,988 crore in April this year. Credit card spend on the e-commerce platform rose to Rs 55,264 crore in August. This figure was Rs 51,375 crore in April.
SBI Card Managing Director and Chief Executive Officer (CEO) Ram Mohan Rao Amara said that as per RBI data, the outstanding on credit cards has grown at a compound annual growth rate (CAGR) of 16 per cent between FY 2016-17 and FY 2021-22) increased from. He said, with the increase in the use of credit cards, there has also been an increase in spending. Monthly credit card spends have been consistently over Rs 1 lakh crore in the last few months. This indicates strength in consumption. There are a lot of expectations from the upcoming festive season.
Balaji Jagannathan, Co-founder and Director, Paycorp.io said, "Emerging from the pandemic year, there has been a trend of increase in spending across all sectors. To start with, it clearly represents pent-up demand being released. Consistent increases in the usage of digital modes of transacting such as credit cards and UPI indicate that consumers are a lot more comfortable using technology rather than cash. It would be interesting to analyse the geographic trends in digital transacting. An increase in digital transactions in non-urban centers will be a very encouraging trend. The rise in credit card usage may additionally represent stress on disposable income. Analysing the sectors where credit card usage has gone up will answer this question. Whereas, an increase in usage of UPI clearly indicates increasing levels of comfort in using technology-based transacting."