RuPay : A recent consumer study by ZET (formerly known as OneCode), a prominent fintech platform boasting a network of 1.5 million financial distribution agents, has shed light on the extraordinary surge in demand for credit cards across India’s Tier-2, 3, and 4 towns and cities.
This surge is attributed to the integration of UPI (Unified Payments Interface), which has reshaped the landscape of digital payments in the country.
During the April-June quarter, the report indicates that Credit cards constituted 29% of the cards issued through the platform, while Mastercard and Visa nearly stood shoulder to shoulder at 36% and 35%, respectively.
However, the tide turned in the subsequent quarter, with the demand for RuPay cards surpassing both Visa and Mastercard. Demand for RuPay credit cards soared by a remarkable 37% quarter-over-quarter (QoQ) during the July-September quarter, encompassing India’s 706 small towns and cities.
Among the banks distributing RuPay Credit cards, Axis Bank, HDFC Bank, and SBI emerged as the top choices among consumers, solidifying their positions as preferred financial institutions for the burgeoning digital payment trend.
This upward trajectory in RuPay credit card demand has been a consistent theme, with the April-June quarter already witnessing a substantial 23% QoQ increase.
However, the real revelation lies in the list of the top 10 cities that have exhibited the highest demand for RuPay cards during the July-September quarter. Jaipur, Meerut, Surat, Nagpur, Ranchi, Raipur, Varanasi, Indore, Kanpur, and Jhansi all feature prominently on this list, highlighting the widespread adoption of RuPay in diverse geographic locations.
RuPay & Manish Shara
Manish Shara, Co-Founder and CEO of ZET expressed his enthusiasm regarding these findings, stating, “Ever since the integration with UPI, RuPay credit cards are witnessing a surge in demand across India’s Tier-2, 3, and 4 towns and cities.
Almost 37% of the cards issued through the platform in India’s hinterland during the July-September quarter were for RuPay Credit cards, followed by Mastercard at 32% and Visa at 31%. This underscores the growing popularity of digital payments, which has now extended to India’s heartland, boding well for the larger ecosystem as we move towards a digital economy.”
With a robust network of over 55 partner brands, including major players like SBI, HDFC, and Axis Bank, ZET has accomplished a fourfold increase in the monthly income of its agents. This success has been instrumental in reducing reliance on direct selling agents (DSAs) while enhancing transparency in financial processes.
The integration of UPI has ignited a financial revolution in India’s Tier-2, 3, and 4 towns and cities, with RuPay credit cards emerging as the preferred choice for consumers. This seismic shift in payment preferences not only underscores the growing prominence of digital transactions but also signifies a remarkable step forward in India’s journey toward a robust digital economy.
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