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Digital payments accelerates pace; UPI, online spending leads

Updated : 2020-09-24 13:34:17

Retail activity levels are almost back to 90 percent of pre-COVID levels after contracting to 55-65 percent in April. Encouragingly, the pace of digital adoption across channels or touchpoints has accelerated. According to an ICICI Securities report, physical payment proportion is consistently falling in favour of digital. Here’s a look at the trend in digital payments.

Retail activity levels are almost back to 90% of pre-COVID levels after contracting to 55-65% in April. Including non-retail, activity levels have retraced to more than 80% after having halved in April.
Retail activity levels are almost back to 90% of pre-COVID levels after contracting to 55-65% in April. Including non-retail, activity levels have retraced to more than 80% after having halved in April.
The pace of digital adoption across channels/touchpoints has accelerated. Digital mode constitutes more than 87% of retail payments including NEFT and more than 65% excluding NEFT.
The pace of digital adoption across channels/touchpoints has accelerated. Digital mode constitutes more than 87% of retail payments including NEFT and more than 65% excluding NEFT.
Contactless payments or UPI has witness remarkable momentum accounting for 24% of overall payments. UPI transaction value has almost double YoY and up more than 35% pre-COVID level to Rs 2.9 lakh crore. Value transacted on mobile banking platform is up over 20%.
Contactless payments or UPI has witness remarkable momentum accounting for 24% of overall payments. UPI transaction value has almost double YoY and up more than 35% pre-COVID level to Rs 2.9 lakh crore. Value transacted on mobile banking platform is up over 20%.
The pace of rebound in card spends was not as robust in July as May/June. The overall credit card spends are still at 70% of pre-COVID levels at Rs 45,700 crore and debit card spends at 80% at Rs 66.500 crore. The proportion of online spending has risen by 10% points to 55-56%. (Image: AP)
The pace of rebound in card spends was not as robust in July as May/June. The overall credit card spends are still at 70% of pre-COVID levels at Rs 45,700 crore and debit card spends at 80% at Rs 66.500 crore. The proportion of online spending has risen by 10% points to 55-56%. (Image: AP)
The pace of card issuances (measured in terms of YoY growth in outstanding cards) has moderated from 24-26% of the pre-COVID period to 15%. (Image: Reuters)
The pace of card issuances (measured in terms of YoY growth in outstanding cards) has moderated from 24-26% of the pre-COVID period to 15%. (Image: Reuters)
Recovery in spending pattern is relatively superior amongst leaders, especially, SBI Cards, HDFC Bank, RBL while Axis and IndusInd have comparatively lagged.
Recovery in spending pattern is relatively superior amongst leaders, especially, SBI Cards, HDFC Bank, RBL while Axis and IndusInd have comparatively lagged.
Banks are now risk-averse both in terms of rolling out new credit cards as well its restricting limits – reflected in steadily rising debit card usage relative to a credit card. (Image: AP)
Banks are now risk-averse both in terms of rolling out new credit cards as well its restricting limits – reflected in steadily rising debit card usage relative to a credit card. (Image: AP)
Leading players have indicated that departmental stores, utility, education, health, fuel, etc and discretionary spends including lifestyle, apparel, consumer durables etc are back to 85-90% of pre-Covid levels. Hotel, travel, airline, railway, as anticipated, are the slowest at merely one-third of earlier levels (Image: AP)
Leading players have indicated that departmental stores, utility, education, health, fuel, etc and discretionary spends including lifestyle, apparel, consumer durables etc are back to 85-90% of pre-Covid levels. Hotel, travel, airline, railway, as anticipated, are the slowest at merely one-third of earlier levels (Image: AP)
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