Rising use of credit cards, UPI payments are a sign of increased consumption: experts

New Delhi, Sep 11 (PTI) Rising use of credit cards and UPI payments is a sign of increased consumption. Experts and people in the market have voiced this estimate.

These figures also testify to an improvement in economic activity in a context of the easing of the 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 spending 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 spending on the e-commerce platform reached Rs 55,264 crore in August. This figure was Rs 51,375 crore in April.

Managing Director and Chief Executive Officer (CEO) of SBI Card, Ram Mohan Rao Amara, said that according to RBI data, credit card outstanding has been growing at a compound annual growth rate (CAGR). by 16% between fiscal year 2016-2017 and fiscal year 2021. -22. ) increase.

“Along with the increase in the use of credit cards, there has also been an increase in spending. Monthly spending on credit cards has consistently exceeded Rs 1 lakh crore over the past few months. This indicates high consumption. There are a lot of expectations for the upcoming holiday season.

Anand Kumar Bajaj, Founder, Managing Director and CEO of PayNearBuy, said the increase in the volume and amount of credit card and UPI payments paints a positive picture of the country’s digital payments landscape.

He said it shows that Indian consumers are dropping their hesitations and are more open to online payments.

According to Mandar Agashe, managing director and vice president of Sarvatra Technologies, an increase in spending levels means that consumption is picking up. The uncertainty created by the pandemic is almost over and markets are back to normal.

Source: navbharattimes.indiatimes.com

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