By 2029, the number of credit cards circulating in India is estimated to reach 20 crore. This forecast highlights a rapid expansion in the sector, driven by a strong compound annual growth rate (CAGR) of 15%, as reported by PwC. The recent data from PwC shows that India’s credit card industry has already achieved a remarkable accomplishment by doubling the number of credit cards issued over the past five years. This growth trend is expected to continue, setting the stage for a similar increase over the next five years. As of March 2024, the total number of credit cards issued stands at 10.1 crores, with major players like HDFC Bank, SBI Card, ICICI Bank, and Axis Bank leading the charge.
The increase in credit card issuance has also impacted transactional activity. Transaction volumes have increased by 22%, while transactional values have surged by 28%. The growth is due to new and creative products and reaching out to more customers. This shows that people prefer using credit and digital payments more than before.
On the other hand, the use of debit cards is seeing a downfall. The volume of debit card transactions has declined by 33%, with spending decreasing by 18% in FY 23-24. This decline can be largely attributed to the growing popularity of UPI, which offers instant payments and zero MDR. The rise of digital payments has grown by 42% year-on-year, with expectations for this trend to triple by FY28-29.
Bottom Line
India’s credit card market is set for an evolutionary phase. The expected increase to 20 crore credit cards by 2029 shows a big change in how people use money. This change comes from new technology and how people like to spend. While the use of debit cards has decreased, credit card transactions and digital payments have increased. This shows that India’s financial system is modernizing quickly. As India continues to adopt digital innovations, the credit card industry is also growing rapidly, strengthening its importance in the country’s economy.
Today, with the popularity of online payment apps like Google Pay, Paytm, PhonePe, etc., people are turning more toward RuPay credit cards. RuPay cards have lower transaction costs compared to other international card networks making it a preference of many individuals. With discounts on top brands, exclusive vouchers, and many other privileges. Before, people used to avoid applying for credit cards due to the possibility of fraud and scams. Now, with all the security measures taken, they choose cards for easy and comfortable transactions.