Despite awareness, usage of Electronic Payment Products still to pick up in India

Banknet has announced Bank Customer Survey Report on Payment Systems 2008 at the Fourth International Conference on Payment Systems on 16th January, 2008. The survey was conducted online on www.banknetindia.com.

The Reserve Bank of India is encouraging electronic payment transactions, by creating awareness among the public about these mediums. The Bank Customer Survey on Payment Systems 2008 was to find how well end-consumers have accepted the available payment options. According to Mr. Anurag Khanna, CMD, Banknet Group, this survey gives Banks an insight into bank users’ awareness and usage preferences of alternate payment channels and electronic payment products.

According to the survey findings, Debit cards have become very popular in India. But, as of date, ATM/Debit cards have still their primary usage for cash withdrawal from the ATM machines, while credit cards are more popular in making payments online. There is a growing awareness regarding RTGS amongst Indians but still around 73% of the respondents surveyed have never used RTGS.

Fund transfer and Online bill payment emerged as the most popular payment options in internet banking, with over 60% of the respondents using this method.

Interestingly, many customers have been unable to use internet banking due to the non availability of site or connectivity problems. Moreover, a trust in the security of internet banking is yet to develop amongst the majority of bank customers. As far as mobile banking is concerned, its popularity is limited mainly due to the charges for sending SMS’s are not justified.

"Despite the available payment options, how well customers are able to use them is still a question. The key differentiator in future will be how banks can increase usage of these payment options by the end user", said Mr Khanna.

Bank Customer Survey Report on Payment Systems 2008 is available at Banknet online book store



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