Shoppers use debit cards more on ecommerce websites: Report
In terms of value, credit cards were ahead at more than $10 billion compared with slightly less than $8 billion for debit cards.
There were 589 million debit card transactions reported on the FSS gateway compared with 201.4 million credit card transactions last year, according to the FSS Payments Trend Report 2018. In terms of value, credit cards were ahead at more than $10 billion compared with slightly less than $8 billion for debit cards.
“For the trend report, we have only calculated merchant payments done digitally that are being processed by our platform and not included peer-to-peer payments,” said Suresh Rajagopalan, president of software products business at FSS. “Overall transactions have also been growing, which is a healthy sign, driven by strong growth in debit card transactions.”
While cards dominated the merchant payment space, Rajagopalan said the company processed more than 900 million transactions through the Unified Payments Interface last year, mainly person-to-person payments. For mobile banking and Immediate Payment Service (IMPS) transactions, another person-to-person payment mode, the number could be about 700 million, he said.
FSS, which conducted the study with 19 of the major banks, claims to process more than 58% of the total online payments for merchants. According to the report, Visa had the highest share of transactions with 47.5% of the card swipes, followed by Mastercard at 35% and RuPay at less than 16%. In terms of value, Visa cornered a 47.1% share last year.
As per the report, the average amount for debit card transactions was $13.4 compared with $54.4 for credit cards. “Average ticket size of debit card transactions has come down from last year, showing that consumers might be using digital payments for even small purchases online, like food delivery,”
Mobile wallets had the highest share in terms of digital transactions at 291 million, followed by the travel and hotel segment at about 140 million. FSS claims to have processed $1.85 billion of transactions in October.