India to have 200M credit cards by 2029
India's credit card industry is on a rapid growth trajectory, with projections indicating that the number of cards will reach 200 million within five years. This forecast is based on a compound annual growth rate (CAGR) of 15%. A recent report by PwC reveals that this expansion represents a doubling of the number of cards, issued over the past five years.
Credit card transactions surge alongside issuance
The PwC report also highlights a significant increase in credit card transactional activity. Transaction volumes have risen by 22%, while the value of these transactions has surged by an impressive 28%. This growth is attributed to the introduction of new products, innovative offerings, as well as an expanding customer base.
Rapid expansion reflects shift in consumer preferences
The rapid expansion of India's credit card market is a clear indication of changing consumer preferences. It took nearly two decades for India to reach its current number of credit cards, but projections suggest that this figure will double in just half that time. This trend underscores a shift toward credit-based spending and an increasing adoption of digital payments.
HDFC Bank leads in credit card issuance
As of March 2024, banks in India had issued a total of 101 million credit cards. The largest private sector bank in India, HDFC Bank, led this trend followed by SBI Card, ICICI Bank and Axis Bank.
Debit card usage declines as UPI gains popularity
While credit card usage continues to rise, debit cards are seeing a decline in India. The PwC report notes a 33% fall in debit card transaction volumes, and an 18% decrease in spending. This shift is largely attributed to the growing popularity of the Unified Payments Interface (UPI), known for its user-friendly nature and zero Merchant Discount Rate (MDR).
