Distribution and Usage of Digital Payment Cards in India: Findings from NSS 77th Round Survey

Promoting digital economy is a policy priority of the Government of India. The latest available large-scale survey data on households’ debt and investment from National Sample Survey Organization (NSSO, 2021) provides details on the possession and utilization of payment cards for adults across India. Using the information, this article explores the state and district-level variations in its distribution and usage in India—which is a crucial knowledge gap in the existing literature. The article finds that while 85% of Indian adults have a bank account, less than half of them have a debit or credit card. Also, 82% of card-holders have actually used their cards for transactions during 365 days prior to the survey. Access to payment cards seems crucial for digital integration. This article attempts to identify policy handles that can help in the spread of payment cards. Their possession is aggregated at district levels and regressed on several indicators. The article identifies that literacy rate, access to banking, road density, prevalence of Self-Help Groups and Co-operative Credit Societies are all significant positive influencers towards digital integration. A similar result is obtained for the usage of payment cards as well. This article comes up with a first glimpse of digital integration at the pan-India level while also providing some policy suggestions for enhancing cashless transactions in India.