Getting UPI customers to move to credit card will be easy, says HDFC Bank
In an interview with CNBC-TV18, Parag Rao, Group Head-Payments Business, Consumer Finance, Digital Banking and Information Technology at HDFC Bank said that while talking about the Indian electronic payment system, he expects that getting UPI customers to move to credit cards will be easy.
Getting Unified Payments Interface (UPI) customers to move to credit cards will be an easy feat, given that UPI customers already understand the electronic payment system.
In an interview with CNBC-TV18, Parag Rao, Group Head-Payments Business, Consumer Finance, Digital Banking and Information Technology at HDFC Bank said that while talking about the Indian electronic payment system, he expects that getting UPI customers to move to credit cards will be easy.
He said, “You have got a huge set of customers who conduct billions of transactions every month on UPI. These are electronically savvy customers, they understand payment systems and this is the funnel for tomorrow's credit card business. So, over the next 2-3 years, as I see it, the market will continue expanding; penetration of electronic payments into what we call personal consumption expenditure is going to grow and you will also see credit cards growing in a symbiotic manner along with UPI.”
UPI has gained significant momentum in India, with an industry penetration rate of 15-20 percent. However, the Indian credit card industry is still at an early stage, with only 1-2 percent penetration. With the recent announcement of UPI linkage to Rupay credit cards, Rao believes that it is a welcome change that will help drive the adoption of credit cards among UPI users.
According to Rao, the Indian payments industry is at an inflection point, and banks need to be agile and innovative to stay ahead of the curve. The adoption of new technologies, such as blockchain and artificial intelligence, can help banks offer a better customer experience and drive growth.
He also believes that the COVID-19 pandemic has accelerated the adoption of digital payments in India. With more people working from home and avoiding physical contact, digital payments have become the preferred mode of payment. Rao expects this trend to continue in the post-pandemic world, with digital payments becoming an integral part of daily life.
As the Indian electronic payment system and the future of the digital payments industry continues to evolve, banks need to stay nimble and innovative to meet the changing needs of their customers.
Also Read | Exclusive | UPI lite, credit cards, conversational payments to drive next wave of growth: NPCI's Dilip Asbe
HDFC Bank also reported a fantastic credit card market share in spending for the month of March. It was at 74.74 percent versus 71.9 percent on a month-on-month basis.
For more details, watch the accompanying video
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Kannauj Lok Sabha elections: Can ex-UP CM Akhilesh Yadav reclaim this erstwhile SP bastion?
May 12, 2024 11:32 PM
Khunti Lok Sabha Elections 2024: Arjun Munda and Kali Charan to lock horns in this clash of tribal leaders
May 12, 2024 8:59 PM
Malkajgiri Lok Sabha election: A three-way contest among turncoats
May 12, 2024 8:45 PM