Amazon’s Great Indian Festival and Flipkart’s Big Billion Day Sale have brought online purchases to a new point.
This year’s festive season in India is proving historic not only for shopping, but also for digital payments. Amazon’s Great Indian Festival and Flipkart’s Big Billion Day Sale have brought online purchases to a new point. The result was that online credit card spending in September is towards crossing the mark of Rs 1.2 lakh crore for the first time, which is one of the biggest record ever.
According to the Moneycontrol report, for the first time on September 22, online credit card expenditure crossed the Rs 10,000 crore mark in a single day. This was the day when along with the onset of Navratri, the bugle of e-commerce cell rang and the impact of GST rates from the government also saw. According to the report, by 26 September, the credit card had reached Rs 1.03 lakh crore, which is almost equal to the figure of Rs 1.06 lakh crore last year. There were still four days of the month left, which makes it clear that the September figure will destroy all records.
Impact on debit card and UPI
While the brightness of the credit card increased, the debit card expenses were seen lagging behind. In September, online debit card expenses were reduced to Rs 11,000 crore, which is less than Rs 14,300 crore last year. The reason for this is clear that people are taking advantage of maximum cashback, discount and EMI offers through credit cards.
UPI figures also recorded a slight decline. While 670 million transactions were being done daily at the beginning of the month, it decreased to about 640 million during the cell period. The transaction value also fell from Rs 1 lakh crore to about Rs 80,000 crore. However, experts believe that UPI is such a big payment network that this decline cannot affect its domination.
Why increased card expenses?
- E-commerce platforms gave huge discounts and cashback offers on the co-branded credit card.
- RuPE-UPI Linked Credit Cards were provided to new users through Fintech companies.
- Consumers preferred credit cards in large shopping and EMI options.