The debit cards are continued to be the most preferred
payment instrument for the customers or the shoppers on every e-commerce website, as per the reports
of FSS (Financial software and system).
As per the reports of Payment trends,
around 589 million debit card transactions were reported on the FSS gateway as
compared to the 20.14 million credit card transaction done by last year (2018).
In terms of value, the credit cards are more ahead at $10 billion higher rate
as compared to the slightly less than $8 billion for debit cards.
For the trend report, it has been calculated that the
merchant payments done digitally which are being processed by the e-commerce platform are not including
peer to peer payments.
Rajagopalan, who is the president of software products
business at FSS, the overall transaction has also been increasing which is a
healthy sign, driven by strong growth in debit card transactions. While the
cards have been dominated the merchant payments space, more than 900 million
transactions were done through Unified payment interface in the year 2018.
Importance
of Debit Cards
While buying online or standing in front of the payment
terminal at the checkout line, shoppers need to choose the payment method such as debit card, credit card, PayPal check, etc.
All these depend entirely on the location and the context of the transaction.
In the recent study of 1000 consumers who carry both the credit and the debit
card, around 50% shoppers prefer to use the debit card and only 31% of the
shoppers use the credit card for payment option.
The debit cards are quite useful for the everyday expense
when purchasing grocery items, household items from an e-commerce platform. There is a widely-held feeling which should
not pay later for the groceries to be eaten today, it may be the habit- it was
not long ago we all used cash or wrote a cheque to buy grocery items, but these
two sources (cash or cheque) have given the way to debit cards usage.
The
general consensus of the using debit card helps the cardholder to manage their
personal budgets for everyday expenses like gas bills, grocery, household
bills, etc.
As per the reports, Visa has the highest share of
transactions with 47.5% of the card swipes that are being followed by Master
card at 35%, and RuPay at less than 16%.
The average amount for the
transactions by debit card is $13.4 as compared to the credit cards which is
$54.4. Since past 2 to 4 years, the average ticket size of the debit card
transactions has come don that shows the consumers might ensuring the digital payments for even small
purchases like online food ordering, grocery items, etc.
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