Jefferies, the investment banking firm, this week claimed that there is development in digital transaction mode by bank users after demonetization while there has been a drop in consumption of debit cards.

As Digital Transactions Jump, Debit Cards Usage Drops

In a study, Jefferies also claimed that the RuPay acceptance for e-commerce has elevated while the development of credit cards has dropped down. The NEFT (National Electronic Funds Transfer) volumes have jumped upwards by 30% with an additional 10% development in per-payment size, leading in almost 40% development by value, it claimed to the media.

In the same way, the IMPS (Immediate Payment Service) on a smaller base is displaying slow growth. “While development has come off low base, it still persists to develop at 100%-plus. Instant transaction, with its 24×7 accessibility and ease of selecting the receiver makes it a very attractive and helpful transaction system,” Jefferies claimed.

As per the study, the use of debit cards has been feeble and the entire debit card payments have witnessed a modest drop, both in terms of volume and value. “Card swipes are developing at sub-10% with no modifications in ticket size leading to sub-10% development in payment value post an unexpected spike at the time of demonetization.” “It might, as a result, seem rational that a demonetized banking network has begun witnessing more cash-based payments and the debit card is being defeated,” Jefferies claimed to the media.

In contrast to this, the UPI (Unified Payment Interface) has seen a sensible pace up with BHIM mobile app, the government marketer payment app, carrying on showing a sturdy development in volumes. RuPay acceptance for e-commerce is quite cheering, as per Jefferies. RuPay is the local card transaction system (same as the Mastercard and Visa). “Total spends in each month have almost increased 3x since demonetization for payments over point of sale (POS) while e-commerce investments have increased more than 2x. Taking into consideration the fact that RuPay cards were almost offered during the monetary inclusion drive, such drifts are very cheering.”

In the mean time, credit cards have witnessed a worldly growth. Card spends have jumped to 40% plus with an analogous enhancement in whole transactions.