The Indian debit card market registered momentous growth during the years between 2007 and 2011, with combined card volume, when combined with prepaid cards, recording a compound annual growth rate (CAGR) of 31% in 2011, over figures from 2010.
The market grew substantially both in volume and value terms during this time period. Debit cards are expected to touch around 400 million in India by the end of FY 2014.
With an increasing number of debit card transactions, payment value is projected to grow at a CAGR of around 24% during FY 2012-2014.
Growth within the Indian debit card market is being driven by hanging lifestyle demographics, the need for more sophisticated products, the growth of online shopping, and increasing levels of per capita.
Many Indian banks have also been expanding their networks of automatic teller machines (ATMs) in order to develop their business.
There are approximately 268 million debit cards in India, according to the latest research. The debit card market has picked up faster than credit cards because of the lower risk advantage for banks.
Part of this expansion has involved installing point of sale (POS) terminals, which are electronic data-capture swipe machines and accept both debit and credit card payments at retail outlets.
Domestic payment scheme, RuPay, looks set to compete with Visa and MasterCard. RuPay aims to capture 50% of the debit card market by March 2015, with banks being able to roll out 10 million RuPay cards by the end of next financial year. NPCI is offering services to banks at 40% lower cost in order to achieve the targets and to increase acceptance of RuPay card.
For more information on the Indian debit card market, see the latest research: Indian Debit Card Market Report
Follow us on Twitter @CandMResearch
Companiesandmarkets.com issues news updates and report summaries covering all major industries and sectors. The service provides additional client monitoring and timely alerts to breaking industry and sector news leading the day's business headlines. News articles, written by our staff, contain additional analyst insight, providing value added insight for our readers. News updates and real-time alerts on newly-released market reports are also available from our Facebook page, Twitter feed @CandMResearch and RSS links. We also welcome inquiries from business journalists and the news media.