The low starting point of digital payments, has led to mass adoption of all types of digital payment products and are growing at a healthy pace in their respective playing fields. Market share gains of UPI in digital payments should be seen as an expansion of digital payments in customer or merchant segments that have not been target credit card segments. In this backdrop, let us examine what SBI Credit Cards is doing to wade off the onslaught from UPI & Mobile Wallets.
Credit Cards are meant for P2M (person to merchant) payments and not for P2P (person to person) payments. Most of the rapid rise in UPI payments belongs to the P2P category. Data on UPI payments in P2M categories started to be reported from April 2020. UPI P2M payments have also seen a strong rise although the value of spends is broadly comparable to credit card and