Open AccessTrend and dynamics of card payment system in India
Author(s) -
N Karunakaran,
P. Shibu,
M. D. Devasia
Publication year - 2021
Publication title -
journal of management research and analysis
Language(s) - English
Resource type - Journals
eISSN - 2394-2770
pISSN - 2394-2762
DOI - 10.18231/j.jmra.2021.037
Subject(s) - payment , payment card , business , database transaction , payment service provider , debit card , atm card , credit card , commerce , payment system , issuing bank , intermediary , finance , computer science , database
Payment system in India has undergone a dramatic change in recent years. The payment through cards, using both debit and credit cards, is one of the early innovations in the modern payment system in the country. Several intermediaries are involved in the effective functioning of card payment mechanism. As a result, the card payment infrastructure has grown remarkably well across India. The volume of payments made through these devices as well as the value of card payments increased rapidly in the last two decades. Among the commercial banks, the State Bank of India dominates in the maintenance of ATM infrastructure, the issue of cards and in the volume and value of card transaction. The private sector banks dominate in the installation of POS terminals and HDFC bank tops in the POS credit card transaction. However, the recent trend shows that the transaction through cards as a percentage of total retail electronic payments has been declining in India, as other retail payments platforms have become popular.