In today's time, making payments has become very easy. We easily make payments through UPI (Unified Payments Interface). While UPI has brought a revolution in digital payment, on the other hand, people now start keeping less cash. Now there is no need to search for change for 5 rupees. In such a situation, now 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 give more ease to the user in making payment. Recently UPI started the UPI Circle feature. Due to the new features of UPI and the ease of online payment, now people prefer to transact with UPI instead of debit cards. Despite having all these features, the debit card is not expected to end for a few years.

However, UPI's ATM Cash Withdrawal 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 for the user and now they do not need to travel with different cards. All their cards have been included in a smartphone.

Will the debit card be eliminated?

Debit cards will not be completely eliminated. Even today, debit card plays an important role during big transactions, offline payments, and foreign travel. In such a situation, it would be completely wrong to say that UPI will replace the debit card. Even though UPI is used for every small payment, still UPI is not accessible in many places. In such a situation, a debit card is used for these transactions.

Banks are facing a challenge regarding debit cards 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 decreased.

According to government data, after 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 justified that UPI has affected the debit card market to a great extent.