Instances of ATMs spewing counterfeit notes and fraud during point of sale transactions have resulted in the growth of online usage of debit cards.
Moreover, the lack of point of sale (PoS) terminals in remote areas of the country is paving the way for online transactions, said Uttam Nayak, Country Manager, India and South-Asia, Visa.
At present, 75 per cent of the debit card transactions come from the top eight cities in the country. However, the rest of India is witnessing double-digit growth.
“For those belonging to non-metro areas, the shift to online transactions is empowering as it creates a level-playing field. They can now buy the same products that their urban counterparts buy. This has helped both e-commerce and the adoption of electronic payments in India’s hinterland,” Nayak said.
To minimise cases of fraud, global payments solution provider, Visa is working towards driving growth in efficient cashless payment solutions, Nayak said.
‘Dream to Advance’
Visa has launched a nationwide campaign ‘Dream to Advance’, which will sensitise people about the safety of using a debit card online.
“With the increased penetration of broadband and mobile connections in India, e-commerce is on the rise with several online players accepting debit cards as a mode of payment,” said Nayak.
At present, transactions on online platforms are twice that at point of sales. The benefit of debit cards is that people spend from the balance in their account, even as they keep a tab on their spends.
According to the RBI, there are 300 million debit card users.