PoS, e-commerce form 31% of total debit card usage now

BENGALURU: Increasingly, the debit cards are getting used now not just for money withdrawal from ATMs, but additionally for merchant transactions. Five years in the past, ATM transactions shaped 90% of debit card usage in volume and 95% in price. Today, PoS (point-of-sale) and e-commerce shape 31% of total transactions, and 15% of the worth of transactions. “We’ve seen our rural consumers do ecommerce transactions to take advantage of pageant gives on Flipkart, Amazon,” says RA Sankara Narayanan, MD, Vijaya Bank.

Changing DBT disbursal patterns also are encouraging debit card usage. Where previous a bank’s trade correspondent (BCs) would move in particular person to a village to disburse the Rs 2,000 monthly pension for senior citizens, widows and the disabled, these days many beneficiaries of state and Central government schemes are seeing direct account transfer.

Bankers say that during city spaces, the federal government choice to waive MDR (merchant discount price) charges for debit card purchases under Rs 2,000 has really helped debit card usage in buying groceries. “Earlier, supermarkets and clothes retail outlets did not love to swipe debit cards for purchases under Rs 200. They would warn the customer they’d price an extra 2-3%. Now, with the MDR waived, we are seeing a surge in small-ticket purchases with debit cards," says Sanjeev Moghe, head, cards and merchant acquiring trade, Axis Bank.

Urban India additionally values comfort. “A majority of our consumers pay their utility expenses, cell or DTH expenses the use of their debit card. Of the overall collection of non-ATM debit card transactions, I'd say about 50% these days is going against online payments, including e-commerce, and 50% against PoS machines at retail outlets,” says Moghe. Another strong pull for debit card is the range of cashbacks, discounts and particular gives that include its usage for actions like buying groceries. Proving specifically standard is the EMI option all the way through check-out for acquire of top of the range electronics on e-commerce sites.
PoS, e-commerce form 31% of total debit card usage now PoS, e-commerce form 31% of total debit card usage now Reviewed by kailash soni on November 05, 2018 Rating: 5
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