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The Covid-19 pandemic has transformed the payment landscape of India. Since April 2020 the use of plastic money, credit card in other words, is increasing fast. Credit card transactions by number and volume both more than doubled in the past 16 months. According to Reserve Bank of India (RBI) data, credit card transaction volume jumped by almost 2.4 times in July 2021 compared to April 2020, just after the announcement of lockdown by Prime Minister Narendra Modi.

On the other hand, the amount that is involved in these transactions surpassed Rs 75,000 crore (or up 258%) in July 2021 compared to April 2020. Not only credit card transactions, debit card transactions, UPI based payment and other digital payment method had seen multiple folds growth in the past one and a half year, RBI data revealed.

16-month period

There was a spurt in credit card transaction amid the pandemic. From only 7.75 crore in April 2020, the number of credit card transactions rose to 18.25 crore in July 2021 – a rise by 135%.

In this period, credit card transactions slowed down a bit in November 2020, February, April and May 2021. In the rest 12 months the transactions were up in comparison to the previous month.

A glance at the month-wise data reveals that in April 2020 total credit card transaction stood at 7.75 crore. This figure was gradually rose to 10.34 crore, 12.55 crore, 13.26 crore and 14.33 crore in May, June, July and August respectively, when the economy was gasping under the effect of the countrywide lockdown.

In September 2020 the volume of credit card transaction went up to 14.95 crore and further went up to 17.23 crore in October.

The number of credit card transactions first contracted in November 2020 when the covid related restrictions eased up. That month the volume of transaction went down to 16.67 crore, according to RBI data.

The volume again rose in December 2020 and January 2021 when it touched 17.47 crore and 17.50 crore respectively. In February it again went down by almost 1.3 crore to 16.19 crore.

In March the figure touched at 18.93 crore and in April credit card transactions dipped by over 3 crore and touched at 15.81 crore, showed RBI data.

From May to July, 2021 the number of transactions clocked 13.48 crore, 15.51 crore and 18.25 crore respectively.

July 2021

 According to RBI data the value of credit card transactions was the highest in July 2021. The amount involved was around Rs 75,120 crore, which includes Point of Sale (POS) and ATM transactions. This was about 258% higher than the Re 21,000 crore in April 2020.

After the announcement of lock down the use of plastic money rose fast. In May 2020 the total amount was Rs 32,300 crore, followed by Rs 43,000 crore, Rs 45,730 crore, Rs 50,500 crore and Rs 51,350 crore in June, July, August and September respectively, show RBI data.

In October the value of transaction stood at Rs 64,900 crore. In November, it rose to Rs 62,580 and further rose to Rs 63,850 crore in December.

Again, in January 2021 the amount rose to Rs 65,000 crore. It went up further to Rs 60,360 crore in February and a record Rs 72,620 crore in March.

Number of credit cards

There was a spike in the number of credit cards issued. According to RBI data, in July 2021 the total number of credit cards in the system stood slightly above 6.35 crore, that is almost 11% up from 5.73 crore credit card issued in April 2020.

Spends jump by 223%

If you compare April 2020 and July 2021 figures, you will find that average spend per credit card jump by almost 223%.

In July 2021 the total number of credit cards stood at 6.35 crore and the amount involved was Rs 75,120 crore. On the other hand, in April 2020 total number of credit cards and total amount spent stood at 5.73 crore and Rs 21,000 crore respectively.

In July 2021 the average amount spent per credit card stood at Rs 11,830, up by a mighty 223% from Rs 3,665 in April, 2020.