RBI’s data clearly shows that the biggest use case for debit cards is cash withdrawals at ATMs. Till the time we have similar acceptance infrastructure of an alternate payment instrument, cards will be relevant for their specific use cases,” Gayathri adds.Īlso read: In just 7 months, India’s UPI clocks a staggering 2 Bn transactions They also have an advantage due to the extensive existing acceptance infrastructure. “Cards will still have their use cases in the short term. Further, while guidelines for wallet interoperability have been released, it is yet to be seen how this pans out in the post-UPI era. toll payment, cab payments, etc.,” she says.Īccording to data from NPCI, average ticket size of UPI transactions stood between Rs 1,500 and Rs 1,600 over the last three months.īut digital wallets in the country are challenged by regulatory hurdles like KYC verification. Cards are generally used for high value transactions while wallets are being used for high-volume, small-ticket transactions where speed of transaction completion is also very important, e.g. “The use cases of cards and other digital payment instruments (m-wallets and pre-paid instruments) have been quite different.
