A new report released on Thursday revealed that 75 percent of all "Credit Cards (CC) on UPI" transactions take place at small merchants. The report also highlighted that the integration of UPI (Unified Payments Interface) has driven the growth of RuPay credit cards. Kiwi, a credit-on-UPI platform, reported that the adoption of 'Credit Cards on UPI' was highest among young adults below 40.
The report emphasised that CC on UPI has emerged as the primary mode of payment, with users spending over Rs 22,000 every month. Additionally, the average number of transactions using a CC on UPI is 21 per month, which is four times higher than that of a traditional physical credit card.
"RuPay Credit Cards' market share has grown from 3 percent in FY23 to 10 percent in FY24. This success can be largely attributed to UPI's success," said Kiwi Co-founder Mohit Bedi.
"The concept of virtual credit cards has picked up exponentially. Nearly 20 out of every 100 credit cards being issued in the country are virtual credit cards," he added.
According to the report, the average transaction size for CC on UPI users is Rs 1,125, lower than traditional credit card transactions, which average around Rs 4,000.
Additionally, the report showed that grocery and Kirana stores were frontrunners in embracing CC on UPI (constituting 33 percent of total usage), followed by apparel and electronics (15 percent) and food and dining (7 percent).
Meanwhile, PhonePe recently launched its UPI services in Sri Lanka. The Bengaluru-based company has partnered with LankaPay to enable PhonePe UPI payments in the country. This will allow Indian travellers to make UPI payments in Sri Lanka using the PhonePe app. All they need to do is scan the LankaQR code to make the payment.
Payments via the PhonePe app in Sri Lanka will be facilitated by the LankaPay National Payment Network. Indian travellers in Sri Lanka will no longer need to carry cash and worry about currency conversions, as the amount will be debited in Indian currency, showing the currency exchange rate.
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Inputs from IANS
