Monday, October 7

Debit Card Transactions Decline While Credit Cards Surge: A February 2024 Overview

In the dynamic landscape of financial transactions, February 2024 witnessed intriguing trends in card-based payments. Let’s delve into the data and explore what unfolded:

Debit Card Transactions: A Downturn

Year-on-Year Decline

  • Volume: Debit card transactions experienced a substantial 13% decline compared to the previous year.
  • Value: The total value of debit card transactions decreased by approximately 4%during the same period.

Month-on-Month Insights

  • Despite the yearly dip, the month of February saw a slight decline in debit card transactions:
    • Volume: A 3.7% decrease from January 2024.
    • Value: A 1.9% decrease during the same month.

Breakdown of Debit Card Usage

  • In February 2024, approximately 0.66 billion debit card transactions took place:
    • 77.1% were ATM transactions.
    • 16.7% occurred at Point of Sale (PoS) terminals.
    • 6.2% were in the realm of E-commerce.

Comparing with January 2024

  • January 2024 recorded around 0.69 billion debit card transactions:
    • 76.2% were ATM transactions.
    • 17.3% took place at PoS terminals.
    • 6.5% were E-commerce transactions.

Transaction Value

  • In terms of value, February 2024 saw a total of Rs 2.99 billion worth of debit card transactions:
    • 85.6% occurred at ATMs.
    • 9.4% were PoS transactions.
    • 5% were E-commerce transactions.

Credit Card Transactions: An Uptick

Year-on-Year Growth

  • Credit card transactions experienced a remarkable surge:
    • Volume: A whopping 34% increasecompared to the previous year.
    • Value: The total value of credit card transactions rose by 26% during the same period.

Month-on-Month Trends

  • Despite the yearly growth, February 2024 witnessed a slight dip in credit card transactions:
    • Volume: A 5.4% decrease from January 2024.
    • Value: A 10.3% decrease during the same month.

Breakdown of Credit Card Usage

  • In February 2024, approximately 0.31 billion credit card transactions occurred:
    • 51.9% were at PoS terminals.
    • 47.9% took place in the E-commerce space.
    • A mere 0.3% happened at ATMs.

Comparing with January 2024

  • January 2024 recorded similar numbers:
    • 52.3% were PoS transactions.
    • 47.4% were E-commerce transactions.
    • Again, 0.3% occurred at ATMs.

Conclusion and Future Outlook

  • The past four years have seen consistent growth in both debit and credit card transactions.
  • With 71 million active credit cards in FY22, the trend is expected to continue.
  • Card-based transactions are poised for steady growth, projected at nearly 16% year-on-year over the next four years.

Remember, whether you’re swiping a debit card or tapping a credit card, these little plastic rectangles are shaping the future of finance! 🌟💳

Source: 1Lattice


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