graeme_p - 6:46 am on Feb 17, 2010 (gmt 0)
I live in Sri Lanka, but it is similar economy - GDP per capita about 50% higher, but a much small country (around 20m people vs over 1bn)
Give me a break. What do the Indian middle class earn? $1000/year?
I assume you left a zero off that. You did mean $10,000/year? My maid gets more than $1,000/year - hardly a middle class occupation, and a driver or gardener would get more.
Almost everyone I know socially would get at least $1,000/month, a high proportion a few $1,000 a month, and a few a lot more. The lower cost of living means that that is enough to have a reasonable disposable income.
People who can spend time online have probably spent a few hundred dollars on a computer, and can pay their ISP. They almost certainly do have a credit card. Do you think that they are on $2 a day? Only the online population are relevant to webmasters.
I doubt that you've done much homework on this. India has approx. $2 billion in annual credit card volume whereas the U.S has $1 trillion
What are the growth rates? Are there other reasons for not using cards such as shops that do not accept cards, tax evasion, better prices for cash, higher risk of fraud etc.
I use cash a lot more here than in the UK, because we buy a lot of stuff (especially food) from places that do not take cards and I do not use cards in restaurants because of the risk of fraud.
The US market is still a lot bigger than India or China, but it is unlikely to stay that way.