25% of Indian card payments made online

25% of card transactions in India now take place online, according to the Reserve Bank of India.

25% of card transactions in India now take place online, according to the Reserve Bank of India.

According to data the number of card transactions taking place online grew by 50% over the last year whereas physical card transactions rose by 35%. The number of total card transactions per month in June 2013 rose by 35% to 84.7m from 62.5m last year.

Uttam Nayak, head of Visa in India, said: "The number of online transactions will catch up with physical transactions in a few years going by the present trends.

"Growth in online payments is being driven by utility payments, travel and ecommerce. What we are seeing is that growth in ecommerce in Tier-II cities much higher than in metros."

Nayak added that growth would probably continue to accelerate, as currently only an estimated 5-10% of India’s 125m internet users make card payments online.

Debit card use has grown faster than credit card use, with a 45% increase from 30.3m to 47.9 transactions a month. Credit card use grew by 24%.

 

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