Debit card usage falls 10% in November

Around 0.53 billion debit card transactions were recorded in November, down from 0.57 billion in October. Debit card transaction volumes declined 10 per cent year-on-year in November, while the total value of transactions fell by around 4 per cent. On a month-on-month basis, volumes dropped 6 per cent, though transaction value rose 8 per cent, reflecting higher average withdrawal sizes despite fewer swipes.

ATM withdrawals continued to dominate, accounting for 81.2 per cent of volumes, followed by point-of-sale (PoS) transactions at 14.2 per cent and e-commerce payments at 4.6 per cent. In value terms, debit card transactions totalled Rs 2.67 billion, with ATMs contributing 87.3 per cent, PoS 8.5 per cent and e-commerce 4.2 per cent.

Despite the slowdown, State Bank of India retained its leadership in the debit card segment with a 24 per cent market share in November. Bank of Baroda followed with a 9 per cent share, while Canara Bank, Union Bank of India and HDFC Bank held around 6 per cent each. Bank of India accounted for roughly 4 per cent of the market.

In contrast, credit cards continued to gain traction. Credit card transaction volumes rose 27 per cent year-on-year in November, while transaction value increased 11 per cent. However, on a sequential basis, volumes slipped 3 per cent and value declined 12 per cent compared with October, indicating some near-term moderation.

About 0.50 billion credit card transactions were carried out during the month. PoS payments accounted for 50.4 per cent of volumes, closely followed by e-commerce transactions at 49.1 per cent, with ATM usage remaining negligible. In value terms, total credit card spending stood at Rs 1.89 billion, down from Rs 2.15 billion in October, with e-commerce contributing nearly 60 per cent of the value.

HDFC Bank remained the largest credit card issuer with a 22 per cent market share, followed by SBI Cards at 19 per cent, ICICI Bank at 16 per cent and Axis Bank at 14 per cent.

Over the past four years, debit and credit card transactions have grown at a compound annual growth rate of around 20 per cent and 19 per cent, respectively. Industry estimates suggest card-based transactions could continue to expand at roughly 16 per cent annually over the next four years, even as debit card usage increasingly gives way to UPI-led payments for everyday spending.