India has registered debit and credit card base of 369 million, of which approximately just 10-to15% cards are used for online transactions, according to a report released by the Reserve Bank of India (RBI).
Titled ‘Enabling Public Key Infrastructure (PKI) in Payment System Applications,’ the report further underlines that nearly 350 million debit cards and 19 million credit cards are currently in circulation in the country.
The RBI was cited by PTI as saying, "Credit cards have a higher share in the discretionary category whereas debit cards dominate in routine expenses like utility payments."
"About 30 per cent of credit card spends are being done online. At least 10-15 per cent of customers use their cards only online, many from smaller cities," the central bank said in a report.
The RBI has incorporated studies of two major payment networks including MasterCard and Visa. MasterCard said that nearly 75% of all card payments are concentrated in top 20 cities with Delhi, Mumbai and their suburbs alone accounting for 43%.
A Visa study highlights that people in the monthly income band of INR75,000-INR100,000 are the most prolific users of electronic cards.
The study further highlights that electronic payments dominate their expenses including rail/airfare (71%), durable goods (61%), rent (49%), tele/mobile (47%), medical institutions (46%), clothing/footwear (44%), and beverages and refreshments (35%).