Page 9 - Payment System Review -Q2 FY24

Payment Instruments & Users

Payment instruments, such as, banknotes (paper money), coins, cheques, payment cards, digital
wallets allow their holder to conduct a financial transaction. Bank accounts, digital wallets, and

payment cards are key elements for the digitalization of payments and fostering financial inclusion. In
the last few years, the adoption and usage of digital payment instruments have witnessed manifold

increase and the momentum has continued in this quarter as well.

As of quarter-end Q2-FY24, number of payment cards

stood at 59.2 million which was 54.3 million in previous
quarter Q1-FY24. More than 82% of the total cards

were issued by Banks & MFBs, while 12% were issued
by BBs and the remaining 6% were issued by EMIs.

These cards comprised of debit cards (81.7%), credit
cards (3.4%), social welfare cards (14.6%) and prepaid

cards (0.2%). By payment scheme, majority of these
cards are backed by International Payment Schemes

which includes Mastercard, VISA, Union Pay International, American Express and JCB.

While payment cards have been in existence for decades,
the emergence of E-Wallets issued by EMIs represents a
recent advancement in the payment system. EMIs have

successfully opened 2.7 million e-Wallets till quarter end

Q2-FY24, signifying a more than twofold increase in just
four quarters. Average growth rate of e-wallets is
currently 23%. FY23 FY24

The number of registered mobile banking and internet banking users has also increased during the

quarter by 5.4% and 8.0% respectively. Digital wallets provided by Branchless Banking service
providers witnessed growth of 3.9% during the quarter reaching to 67.2 million mobile wallets.

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