In this edition of our monthly Digital Payments track, we cover the key highlights for September.
According to the RBI, credit card expenditures in Sep’23 decreased by 4.2% from INR 1.48T in Aug’23 to INR 1.42T in Sep’23. Among the major issuers, credit card spending saw a decline, except for IndusInd Bank, which posted a notable 10.9% growth. The reason for this decline can be attributed to the prioritization of savings with an eye on major purchases during the festive months of October and November.
UPI is swiftly becoming the top choice for Indian consumers, not only for in-store purchases but also for peer-to-peer transactions, thereby eroding the contribution of debit cards in the payment landscape
As per NPCI data, the UPI transaction volume and value remained flat in Sep’23 at 10.6B and 15.8T respectively. Compared to the same period last year, UPI transactions in Sep’23 saw a remarkable increase of 55.7% YoY growth in volume and 41.0% YoY growth in value.
In terms of UPI transactions count P2P payments accounted for 41.4% of the total payments made during Sep’23, while the remaining 58.5% were under P2M payments.
Regarding FASTag transactions, Sep’23 witnessed a 15% increase in volume to 299M, compared to 259M in Sep’22. In terms of value, this was a 20% increase from INR 42T in Sep’22 to INR 51T in Sep’23.