Consumer payment trends in April 2024: Debit card decline, credit card surge

In April 2024, a significant shift in consumer payment preferences emerged, with debit card transaction volumes declining by 16% and credit card usage increasing. This trend reflects changing financial behaviours and preferences among consumers, influenced by various economic factors and evolving spending habits.

According to the latest data from 1Lattice, debit card transaction volumes saw a year-on-year decrease of 16%, although the value of these transactions rose by 8%. On a month-to-month basis, there was a 5.6% decline in transaction volume and a 4.1% decrease in transaction value from March to April 2024. In April, 0.67 billion debit card transactions were recorded, with 77% at ATMs, 17% at point-of-sale (PoS) terminals, and 6% in e-commerce.

In contrast, credit card transactions experienced a year-on-year volume increase of 33% and a value increase of 18% in April 2024. Month-to-month changes were minimal, with a 0.1% increase in transaction volume and a 4.8% decrease in transaction value from March to April 2024. April saw about 0.35 billion credit card transactions, with 53.4% at PoS, 46.3% in e-commerce, and 0.3% at ATMs.

Over the past four years, debit and credit card transactions have grown at compound annual growth rates (CAGR) of 20% and 19%, respectively, according to a PWC India report. With 71 million active credit cards in FY22, card-based transactions are expected to continue growing at approximately 16% year-on-year for the next four years. This shift in consumer behaviour underscores the need for financial institutions to adapt to changing preferences by enhancing their offerings and leveraging technological advancements to meet evolving consumer needs.