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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM68619
Volume:
10 |
10 |
Oct 2026
Pages:
1-9
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Department of management studies
Sankalchand Patel University
Department of management studies
Sankalchand Patel University
Department of management studies
Sankalchand Patel University
Department of management studies
Sankalchand Patel University
This study tracks how payment behavior in India has changed with the evolution of plastic money - credit and debit cards - and the rapid rise of the Unified Payments Interface [UPI]. It examines the shift in consumer preferences from the pre-UPI period to the current digital-first environment. The analysis is based on secondary data sourced from RBI, NPCI, SEBI, World Bank and IMF for the period FY 2019-20 to FY 2024-25. Tools such as trend analysis, CAGR, and comparative volume-value assessment are used to evaluate the performance of each payment mode. The results point to a clear divergence in the payment ecosystem. Credit cards have shown robust growth, with volume CAGR of around 28.3% and value CAGR of 35.3%, supported by reward programs, EMI facilities and the linkage of credit cards with UPI. In contrast, debit card usage has seen a sharp decline, with volume CAGR of about -20.4%. Routine low-value transactions have largely moved to UPI, restricting debit cards mostly to ATM withdrawals. UPI itself has witnessed exponential expansion, recording close to 70% CAGR in volume and 59% in value, and now accounts for approximately 91% of the combined digital payments value. However, its year-on-year growth is tapering, indicating a maturing phase consistent with an S-curve adoption trajectory. Further, indexed and correlation analysis reveals that debit card usage is almost perfectly negatively correlated with UPI growth [approx. -0.99], indicating direct substitution, while credit cards show a strong positive correlation with UPI [approx. +0.997], pointing towards complementary growth. The study concludes that plastic money in India is not being eliminated but is being redefined. Debit cards are narrowing down to core banking functions, credit cards are emerging as specialized instruments for credit and lifestyle spending, and UPI has become the primary rail for everyday transactions. This supports a model of coexistence with role specialization rather than complete displacement. This paper also suggests policy measures such as repositioning debit cards, strengthening fraud controls for card-not-present transactions, and building better data on rural and semi-urban adoption, while noting the limitation of relying on secondary, aggregate-level data.
KEYWORDS
Plastic money in India is not disappearing but transforming. Debit cards' role is shrinking to basic banking functions, credit cards are expanding as a credit and lifestyle tool, and UPI has become the default rail for everyday payments. This confirms a "coexistence with role specialization" rather than a "UPI-kills-cards" narrative.
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Publication Date
10/31/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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