Young customers drive the card payments in India

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Paying by card

The youngsters with debit cards are pushing the card payments to a great extent. This is evident from the increase in the number of car transactions even when there is a constant drop in the average transaction value. Another aspect that has made it evident is the number of card transactions was at its highest this year on Valentine’s Day.

Deepak Chandnani, the CEO of Worldline e-payment services stated that it is not tough to see what is forcing the increase in the number of card transactions. The young people adopt to debit card payments to the highest extent and this is the reason for the soaring rise in the usage of debit cards for payments.

Worldline e-payment services processes one among every four card transactions in the country. As per the company’s data, in 2014 the highest volume was during Diwali and in 2013 the same was during Akshay Trithiya.

This year, the Valentine’s Day spends were 170 percent higher than that in 2014. Also, there was a rise in the number of transactions over 150 percent this year in comparison to 2014, and the same was only 85 percent in 2014 as compared to the previous year.

The other major reason for the increase in the transactions is the EMIs offered at the PoS (Point of Sales) machines that have picked up again. The volume of transactions decreased after the ban on the zero interest EMI schemes by the RBI in 2013. However, the same is soaring now as such schemes benefit the manufacturers, financiers and retailers. Hence, they come up with incentives that make sure the buyers do not struggle with the burden of increasing interest. Now, the buyers get a printout at the PoS providing the details of the loan. The executive claims that this is not of too much change when cards are used.

 

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