Credit cards, EMI payments shows strong growth during Diwali sale

Payments through credit cards and equated monthly
installments (EMI) showed strong growth during the Diwali and Dhanteras
weekend, with many customers opting to purchase goods using credit.

While sales were initially slow during the run-up to the
festival period, payment industry executives told sources that consumers
compensated with last-minute purchases, taking advantage of discounts and
offers.

Payments, which processes card transactions on behalf of
banks, said it had seen a 10% jump in EMI transactions during Diwali. Compared
to last year, the total amount of money paid through the platform jumped around
50%.

Pine Labs, one of the largest card processing companies in
India, said it saw a 300% jump in EMI transactions on its platform. “Consumers
were saving up for deals and discounts during the festive days, the trends over
the last few weeks show that consumers are looking for maximum returns on their
spends,” said Rajeev Agrawal, chief executive officer, Innoviti Payments.

Fears of a consumption slowdown did not hurt the payments
industry, as the last-minute rush made up for slow business at the beginning of
the festive season. “Merchants across categories have seen a spike in sales
through cards during Diwali days. The top performing categories were electronics
and mobiles. We have seen a 133% growth in value in card payments, EMI
transactions have grown by 300% against others days in the festive season,”
said Venkat Paruchuri, chief product officer, Pine Labs.

Worldline, another card payment company, said it saw a 32%
jump in the number of card transactions on its platform during Diwali and
Dhanteras. In terms of the total amount paid through cards, the jump was 37%
during Diwali, it said. Worldline claims it manages more than one million
merchant points in India.