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Card payment on rise in Indian retail sector

Published 28 November 2013

Sales figures from India’s eight top retail chains like Future Group, Shoppers Stop, Spencer's, Wills Lifestyle, John Players, Woodland, Next and The Mobile Store, reports a consistent rise in card payments in the big cities.

According to Shoppers Stop department store chain and Future Retail's Central and Brand Factory fashion outlets reports, payment by cards now account for almost 55% of the total transactions.

In Woodland, payments through plastic money accounts for almost 52% of the total transactions. Spencer's Retail reports 52% card payment activities while at Big Bazaar and Food Bazaar, plastic accounts for 40% of transactions.

ITC's chief executive of lifestyle retail Atul Chand said "This is being fuelled by stronger loyalty programmes and benefits offered by banks."

As per RBI data, card use has been growing at around 30% per year with 331 million debit card user base and 19.5 million credit card user base at the end of the last fiscal year.

Electronic retailing sector has also recorded rise in plastic money use with brands like Apple, Samsung, LG and Sony.

According to The Mobile Store's CEO Himanshu Chakrawarti, credit card transactions have risen 5-6% in the past year and account for almost 56% of the total transactions.

At Wills Lifestyle, the transaction value is 20% higher, while at Future Retail it tends to be 25% more. The average billing value through credit and debit cards at The Mobile Store now is twice the size of cash purchases.