Business Today
Loading...

Post demonetisation, no big jump in card usage, but mobile banking and wallets gather big momentum

As per the Reserve Bank of India (RBI) data, the value of card transactions both debt and credit  at  Point of Sales (PoS)  as well as ATMs   are around Rs 26.22 lakh crore  in the November 2016 to August 2017 period.

twitter-logoAnand Adhikari | November 6, 2017 | Updated 19:00 IST
Post demonetisation, no big jump in card usage, but mobile banking and wallets gathers big momentum

The card transaction  are not encouraging enough  post  demonetization. In the first ten months ( November -August ) of 2016-17, the mobile banking  and mobile wallets shows a huge surge in the volumes as well as value  as compared to the previous period of the corresponding year.
 
As per the Reserve Bank of India (RBI) data, the value of card transactions both debt and credit at Point of Sales (PoS) as well as ATMs are around Rs 26.22 lakh crore in the November 2016 to August 2017 period. This is less than 2 per cent as compared to the similar value in the 10 months between November 2015-August 2016. 

There is, however, a 16 per cent jump in the volume of  transaction. The volume of transaction for both debt and credit card at POS and ATM  went up from 9,132 million to 10, 612 million. Many feels the demonetization impacted the consumption and the restriction on ATM withdrawals also resulted in sluggish card numbers.
 
The mobile banking and mobile wallet transactions, however,  shows a jump, but  the values are not big enough as cards and cash is still the preferable methods of payments. These two new modes of payments  are still small as compared to card transactions.
 
In the mobile banking the volumes jumped by 100 per cent from 524 million transactions to  1,048 million transactions in the same period.  The value of transactions jumped by 137 per cent from Rs 6.06 lakh crore  to Rs 14.40 lakh crore. Many say mobile app banking anyway is a new development as many banking Apps came only recently and the adoption  would  have increased  irrespective of demonetization.
 
The mobile wallets actually took the advantage of demonetization especially PayTM of the world as many customers used it during the demonetization period to make small value payments like payments of cab hire , movie tickets , utility bills etc. The mobile wallet piece is still small , but the volume went  up by some 348 per cent from 537 million to 2,407 million. Similarly , the value of mobile wallet transaction swelled from Rs 24, 174 crore to Rs 67, 472 crore.

 

  • Print
  • COMMENT
BT-Story-Page-B.gif
A    A   A
close