New credit card issue declined by 45 per cent YoY in October: Report

The recognition paper manufacture witnessed a crisp correction of 45 per cent year-on-year successful October arsenic the caller recognition paper contented declined to 7.8 lakh from 16 lakh cards issued past twelvemonth during the aforesaid month.

According to a study by Anand Rathi, the recognition paper manufacture added 7.8 lakh caller recognition cards successful October 2024, a flimsy summation compared to the 7.6 lakh added successful May 2024. However, this fig marks a important diminution of 45 per cent year-on-year (y/y) from the 16 lakh cards added successful October 2023.

It said, "The manufacture added 0.78m recognition cards successful the period vs 0.76m successful May'24 and 1.6m successful Oct'23, down 33 per cent m/m, 45 per cent y/y."

However, it besides noted a dependable betterment successful October 2024, with a decent gait of maturation successful paper additions and betterment successful cards successful unit (CIF). Despite this decline, nett additions successful October 2024 were higher than successful June 2024, contributing to a 16 per cent quarter-on-quarter (q/q) emergence successful cards successful force.

The study besides highlighted that the full spending done recognition cards reached Rs 1.78 trillion successful October 2024, reflecting a 13 per cent year-on-year growth. In presumption of transaction volume, spends grew by 35.4 per cent y/y to Rs 433 trillion during the month.

The creation of spending betwixt point-of-sale (PoS) transactions and e-commerce showed a shift.

As per the report, e-commerce's stock successful full spending worth dropped to 61 per cent successful October 2024 from 65 per cent successful September 2024, portion PoS transactions accrued their stock to 39 per cent from 35 per cent successful the erstwhile month.

The study said, "PoS and e-commerce volumes continued to determination successful favour of the former, present approx. 51 per cent, portion the latter's stock declined to approx. 49 per cent."

In transaction volumes, the penchant continued to determination towards PoS transactions. PoS transactions present relationship for astir 51 per cent of full recognition paper transactions.

While the maturation successful paper additions and spending has slowed compared to past year, the manufacture is showing signs of gradual improvement. The expanding cards successful unit and unchangeable spending trends bespeak a dependable betterment successful the recognition paper market, adjacent arsenic shifts successful spending habits emerge.

The information reflects a cautious but affirmative outlook for the recognition paper manufacture amid evolving user preferences.