Increasing popularity of UPI: Is the importance of debit card ending now? Know the truth!
Nowadays making payments has become very easy. We make payments very easily through UPI (Unified Payments Interface). While on one hand UPI has brought a revolution in digital payments, on the other hand people are now carrying less cash. Now no need to search for change for Rs 5. In such a situation, now the question arises whether the introduction of UPI will destroy the debit card?
UPI becomes a challenge for debit cards
UPI brings new features every day to make its service more accessible and convenient. This feature makes it easier for users to make payments. Recently UPI has launched UPI Circle feature. Due to the new features of UPI and easy online payment, people now prefer to transact through UPI instead of debit card. Despite all these features, debit cards are not expected to go away for a few years.
However, UPI's ATM cash withdrawal facility and UPI Circle have captured a large market share of debit cards. Financial experts also say that features like UPI's ATM withdrawal facility and UPI Circle are posing a challenge to debit cards.
Now people can also withdraw cash through UPI, for this they do not need a physical card i.e. debit card. UPI has saved a lot of time for users and they no longer need to travel with different cards. All their cards are combined into one smartphone.
Will debit card expire?
The debit card will not expire completely. Even today, debit cards play an important role in large transactions, offline payments and foreign travel. In such a situation, it would be absolutely wrong to say that UPI will replace the debit card. Even though UPI is used for every small payment, UPI is not available in many places. In such a situation, only debit card is used for these transactions.
Banks are facing challenges regarding debit cards and UPI. Actually, banks need to create a balance between these two systems so that the importance of both is not affected. Financial institutions also need to balance both payment systems.
Debit card usage has decreased
According to government data, there has been a decline in the use of debit cards since the introduction of UPI. Whereas earlier debit cards were used in the retail market, now UPI has taken its place. UPI is designed in such a way that it is used for all retail digital transactions. In such a situation, it is natural that UPI has affected the debit card market to a great extent.
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