Credit cards and wallets popular with $7.6 trillion in cash transactions

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Ahmedabad: Due to the measures taken by various governments to prevent cash transactions and digital payments, the amount of cash payments made by customers at the point of sale in shops, malls or over the counters across the world is reducing. According to the FIS Global Payment Report, cash payments of about $ 11.6 lakh crore (about Rs 950 lakh crore) in the year 2021 will come down to $ 7.6 lakh crore (about Rs 623 lakh crore) by the end of the year 2022. According to the forecast of this report, the volume of cash transactions will further decrease to $6 trillion in the year 2026.

Over the counter cash payments are also declining in India, as the United Payments Interface (UPI) and payment wallets are growing in popularity in India, the report said.

According to FIS, in 2019, 71 per cent of transactions were done through cash over the counter or point of sale, which has now come down to 27 per cent in 2022. The report also states that the reason most financial transactions are going digital is that 2020 and 2021 are seeing more and more purchases online after the Corona pandemic.

Only five percent of transactions in India were done through digital wallets in 2019, which is now estimated to be around 35 percent. However, with the growing prevalence of digital services and easy access to credit, purchases on credit are also on the rise. Of the total 15 per cent transactions on e-commerce platforms in the country are credit (credit card 11 per cent and buy today pay later 4 per cent) transactions. Apart from this, 17 per cent credit card purchases and 2 per cent purchases on credit are being seen at the point of sale.

– How customers pay globally…

Credit cards are a popular resource globally, although their usage is still very limited in India. In the year 2022, consumers will pay about $ 1.3 trillion through credit cards at the time of purchase over the counter or on e-commerce platforms.

Like Paytm, Google Pay in India, Alipay, Apple and PayPal are popular in the world. A total of Rs 18 lakh crore financial transactions in the world were done through wallets.

With the increasing prevalence of digital technology, the use of transferring money from own account to customer’s account is also increasing. Account-to-account transactions were $525 billion.

Customers paid a total of $ 7.6 trillion in cash.