UPI has brought a revolution in online payment. Now users use UPI for every small payment. While UPI has changed the offline payment along with online payment, the use of debit card has also started decreasing due to this. In such a situation, the question arises whether the use of debit card will end after a time.
Making payments has become very easy in today’s time. We easily make payments through UPI ( Unified Payments Interface ). While UPI has brought a revolution in digital payments on one hand, on the other hand, people have started keeping less cash. Now there is no need to find change for Rs 5. In such a situation, the question arises whether the arrival of UPI will end the debit card?
UPI becomes a challenge for debit card
UPI brings new features every day to make its service more accessible and smooth. These features make it easier for users to make payments. Recently, UPI launched the UPI Circle feature. Due to the new features of UPI and the ease of online payment, people now prefer to transact using UPI instead of debit cards. Despite all these features, debit cards are not expected to disappear for a few years.
However, UPI’s ATM Cash Withdrawl feature and UPI Circle have captured a large share of the debit card market. Financial experts also say that features like UPI’s ATM withdrawal feature and UPI Circle remain a challenge for debit cards.
Now people can also withdraw cash through UPI, they do not need a physical card i.e. debit card. UPI has saved a lot of time of the user and now they do not need to travel with different cards. All their cards are included in one smartphone.
Will the debit card be abolished?
Debit cards will not be completely eliminated. Even today, debit cards play an important role in big transactions, offline payments and foreign travel. In such a situation, it would be completely wrong to say that UPI will replace debit cards. Even though UPI is used for every small payment, there are still many places where UPI is not accessible. In such a situation, debit cards are used for these transactions.
Banks are facing a challenge regarding debit card and UPI. Actually, banks need to create a balance between these two systems so that the importance of both is not affected. Financial institutions also need to maintain a balance in both payment systems.
Debit card usage has gone down
According to government data, since the advent of UPI, there has been a decrease in the use of debit cards. Earlier, debit cards were used in the retail market, but now UPI has replaced them. UPI has been designed in such a way that it is used for all retail digital transactions. In such a situation, it is reasonable that UPI has affected the debit card market to a great extent.