Getting UPI customers to move to credit card will be easy, says HDFC Bank

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.

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.

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