Rising credit card and UPI payments indicate towards increase in consumption amid recovery in economic activities with ebbing impact of Covid pandemic, said experts and market players.

As per the RBI’s monthly data, Unified Payments Interface (UPI) transaction increased from Rs 9.83 lakh crore in April this year to Rs 10.73 lakh crore in August.

Similarly, credit card spends through PoS (Point of Sale) terminal increased from Rs 29,988 crore in April this year to Rs 32,383 crore in August. The credit card spending on e-commerce platforms, which was valued at Rs 51,375 crore in April, rose to Rs 55,264 crore in August.

Rama Mohan Rao Amara, MD and CEO, SBI Card, said the outstanding on credit cards has grown at a Compounded Annual Growth Rate (CAGR) of 16 per cent between FY17 and FY22, as per the RBI’s industry data.

“With the increased adoption and use of credit cards, there has also been an increase in spends. Over the last few months, the industry has seen monthly credit card spends crossing Rs 1 lakh-crore quantum consistently, indicating a robust consumption pattern. With the upcoming festive season, there is expectation and anticipation all around,” he said.

Experts and market players are of the view that the increase in volume and value of digital transactions bode well for the economy. It also indicates that consumers are increasingly becoming familiar with different modes of digital payments, and giving up their inhibitions.

Anand Kumar Bajaj, founder, MD & CEO, PayNearby, opined that the increase in volume and value of payments through cards and UPI paints a positive picture of the digital payments landscape in the country.

The spurt, he said, indicates that Indian consumers are letting go of their inhibitions and becoming more open to online payment adoption.

“As consumers and merchants have experienced the ease and security of digital payment modes, it has brought a behavioral shift in them.