The bank card business witnessed a pointy correction of 45 per cent year-on-year in October as the brand new bank card difficulty declined to 7.8 lakh from 16 lakh playing cards issued final yr throughout the identical month.
The info displays a cautious however constructive outlook for the bank card business amid evolving client preferences.
Based on a report by Anand Rathi, the bank card business added 7.8 lakh new bank cards in October 2024, a slight enhance in comparison with the 7.6 lakh added in Might 2024. Nevertheless, this determine marks a big decline of 45 per cent year-on-year (y/y) from the 16 lakh playing cards added in October 2023.
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It mentioned, “The industry added 0.78m credit cards in the month vs 0.76m in May’24 and 1.6m in Oct’23, down 33 per cent m/m, 45 per cent y/y.”
Nevertheless, it additionally famous a gentle restoration in October 2024, with a good tempo of development in card additions and enchancment in playing cards in drive (CIF). Regardless of this decline, internet additions in October 2024 have been greater than in June 2024, contributing to a 16 per cent quarter-on-quarter (q/q) rise in playing cards in drive.
The report additionally highlighted that the whole spending via bank cards reached ₹1.78 trillion in October 2024, reflecting a 13 per cent year-on-year development. By way of transaction quantity, spends grew by 35.4 per cent y/y to ₹433 trillion in the course of the month.
The composition of spending between point-of-sale (PoS) transactions and e-commerce confirmed a shift.
As per the report, e-commerce’s share in complete spending worth dropped to 61 per cent in October 2024 from 65 per cent in September 2024, whereas PoS transactions elevated their share to 39 per cent from 35 per cent within the earlier month.
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The report mentioned, “PoS and e-commerce volumes continued to move in favour of the former, now approx. 51 per cent, while the latter’s share declined to approx. 49 per cent.”
In transaction volumes, the choice continued to maneuver in direction of PoS transactions. PoS transactions now account for roughly 51 per cent of complete bank card transactions.
Whereas the expansion in card additions and spending has slowed in comparison with final yr, the business is displaying indicators of gradual enchancment. The growing playing cards in drive and secure spending developments point out a gentle restoration within the bank card market, at the same time as shifts in spending habits emerge.
The info displays a cautious however constructive outlook for the bank card business amid evolving client preferences.
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