India Credit Card Payment Market Research Report, Growth, Trends, and Forecast by 2033

Market Overview:

India's credit card payment market is witnessing impressive momentum, powered by deeper digital adoption, expanding card product portfolios, and rising consumer spending across sectors like travel, retail, and entertainment. Leading players are stepping up their game with enhanced security protocols, lucrative reward programs, and contactless payment features that make transactions smoother than ever. According to IMARC Group's latest research publication, "India Credit Card Payment Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", the market was valued at USD 22.6 Billion in 2024 and is projected to reach USD 40.3 Billion by 2033, growing at 6.70% during the forecast period.

This detailed analysis covers industry size, emerging business trends, market share, and key growth drivers along with regional forecasts. The report brings together comprehensive research findings, market evaluations, and data from multiple sources. It captures essential market dynamics including drivers and challenges while spotlighting growth opportunities, financial perspectives, technological advancements, emerging trends, and innovations. Additionally, the report delivers regional market insights alongside a thorough competitive landscape analysis.

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Our report includes:

Market Dynamics
Market Trends and Market Outlook
Competitive Analysis
Industry Segmentation
Strategic Recommendations

Growth Factors in the India Credit Card Payment Market

Surge in Contactless and UPI-Linked Credit Card Transactions

India's credit card landscape is going through a major shift toward contactless and UPI-integrated credit card payments. As digital payment adoption accelerates, tap-and-pay technology is becoming the go-to choice for convenience-seeking consumers. NFC-enabled credit cards let customers complete purchases instantly without entering a PIN for smaller transactions, significantly enhancing the shopping experience. The integration of credit cards with UPI has been a real game-changer, enabling seamless transactions across millions of merchants who previously only accepted debit cards or mobile wallets. This convergence is driving higher transaction volumes, particularly in urban centers where digital payments have already taken root. In August 2024, Visa unveiled cutting-edge payment innovations at the Global Fintech Fest in Mumbai, launching new digital payment solutions in partnership with HDFC Bank, Paytm, Axis Bank, and other major players to boost security, accessibility, and merchant adoption across India. Government and regulatory bodies are actively supporting these innovations to enhance financial inclusion and reduce cash dependency. With more consumers embracing contactless payments, banks and payment providers are expanding infrastructure and driving adoption through attractive cashback offers, rewards programs, and exclusive merchant deals.

Growth of BNPL and EMI-Based Credit Card Offers

Buy Now, Pay Later (BNPL) and Equated Monthly Installment (EMI) models are rapidly reshaping how Indians use their credit cards. Consumers are increasingly drawn to flexible payment options that make big-ticket purchases more manageable. BNPL solutions allow shoppers to split payments into interest-free installments, fueling discretionary spending across e-commerce, travel, and lifestyle categories. Similarly, EMI-based credit card schemes are gaining traction for high-value items like smartphones, home appliances, and education expenses. Banks and financial institutions are actively partnering with merchants to roll out zero-cost EMI plans that eliminate interest charges when settled within specific timeframes. This approach resonates especially well with younger consumers and first-time credit users who value financial flexibility. The expanding reach of fintech platforms is amplifying this trend by offering tailored credit solutions. As EMI and BNPL options become more accessible, lenders are prioritizing responsible lending practices to mitigate risks associated with overspending and potential defaults.

Increased Focus on Security and Fraud Prevention

With digital credit card transactions on the rise in India, financial institutions are doubling down on security measures to combat fraud. Cyber threats like phishing attacks, data breaches, and unauthorized transactions have pushed the industry to implement robust security protocols. Tokenization—a process that replaces sensitive card details with unique tokens for each transaction—has emerged as a critical defense against card data theft in online purchases. Biometric authentication methods, including fingerprint and facial recognition, are being integrated to strengthen cardholder verification. Additionally, banks are deploying artificial intelligence and machine learning technologies to detect and prevent fraud in real-time by analyzing spending patterns and identifying anomalies. Regulatory measures such as mandatory two-factor authentication for high-value transactions and dynamic CVV codes are making payments more secure. Consumer awareness campaigns also play a vital role in educating users about safe credit card practices. As digital transactions continue their upward trajectory, maintaining a proactive security posture will be essential for building trust in India's credit card ecosystem.

Massive Growth in Credit Card Issuance and Transaction Volumes

The numbers tell a compelling story of India's credit card boom. In August 2024, Indian banks added over 920,000 credit cards, bringing the total outstanding cards to 105.5 million—reflecting an impressive 15.6% year-on-year growth. The momentum didn't stop there. Credit card transactions more than doubled from 2.09 billion in 2019 to 4.47 billion in 2024, showcasing how rapidly Indians are adopting card-based payments for everyday needs. What's driving this surge? The booming e-commerce sector combined with attractive offers like cashback and reward points is encouraging more people to use credit cards for both online and in-store purchases. Banks and financial institutions are aggressively promoting credit card issuance, targeting both salaried professionals and self-employed individuals. Improved credit scoring systems and streamlined application processes have made credit cards more accessible than ever, even for first-time users.

• Government Push for Digital Payments and Financial Inclusion

The Indian government's commitment to building a cashless economy is creating a fertile ground for credit card growth. Digital payment transaction volumes exploded from 20.71 billion in FY 2017-18 to 185.92 billion in FY 2023-24. To keep this momentum going, the Union Cabinet approved a Rs. 1,500 crore incentive scheme for FY 2024-25 aimed at advancing cashless India. This initiative is designed to encourage merchant adoption of digital payment infrastructure and incentivize consumers to move away from cash. The government's focus on financial inclusion is also opening doors for millions of previously unbanked or underbanked Indians to access credit products. RuPay, India's indigenous card payment network, has emerged as a serious competitor to Visa and Mastercard—accounting for half of all new credit cards issued in June 2024. This domestic push is not just about payment independence; it's about creating an ecosystem where credit cards become accessible to every Indian, regardless of their economic background.

Key Trends in the India Credit Card Payment Market

Rise of Co-Branded and Specialized Credit Cards

The Indian credit card market is witnessing a shift toward highly specialized and co-branded products designed for specific customer segments and spending patterns. Banks are partnering with airlines, e-commerce platforms, fuel companies, and entertainment providers to launch cards that offer targeted rewards and benefits. These partnerships create win-win scenarios: customers get premium perks tailored to their lifestyle preferences, while merchants drive loyalty and repeat purchases. Whether it's earning accelerated rewards on travel bookings, exclusive discounts on online shopping, or fuel surcharge waivers, specialized cards are resonating with consumers who want maximum value from every transaction. This trend is particularly strong among millennials and Gen Z users who prioritize experiential spending and are highly conscious of maximizing their card benefits.

Integration of Advanced Digital Features and AI-Driven Personalization

Credit card providers in India are leveraging artificial intelligence and advanced analytics to deliver hyper-personalized experiences to cardholders. From AI-powered spending insights and budgeting tools to predictive offers based on transaction history, banks are using technology to make credit cards smarter and more intuitive. Mobile apps now come loaded with features like real-time transaction alerts, virtual card numbers for online shopping, instant card blocking/unblocking, and EMI conversion options. Some banks are even experimenting with chatbots and virtual assistants that help customers track rewards, optimize spending, and resolve queries without human intervention. This digital-first approach is particularly appealing to tech-savvy consumers who expect seamless, app-based control over their financial products.

Growing Adoption of Credit-on-UPI and Innovative Payment Solutions

One of the most exciting developments in India's credit card space is the integration of credit cards with the Unified Payments Interface (UPI). This innovation combines the convenience of UPI's instant payment infrastructure with the credit benefits of traditional cards. Users can now link their credit cards to UPI and make payments at millions of merchant locations that previously only accepted UPI-based transactions. This convergence is particularly transformative for small merchants and mom-and-pop stores that may not have traditional point-of-sale systems but accept UPI payments. The credit-on-UPI model is expanding the addressable market for credit card issuers while giving consumers greater flexibility in how and where they use their cards. As this ecosystem matures, we're likely to see even more innovative payment solutions that blur the lines between traditional payment methods and create entirely new use cases for credit.

The india credit card payment market research report provides a comprehensive overview of the industry. This analysis is essential for stakeholders aiming to navigate the complexities of the india credit card payment market and capitalize on emerging opportunities.

India Credit Card Payment Market Report Segmentation:

Breakup by Card Type:

General Purpose Credit Cards
Specialty Credit Cards
Others

Breakup by Provider:

Visa
Mastercard
Others

Breakup by Application:

Food and Groceries
Health and Pharmacy
Restaurants and Bars
Consumer Electronics
Media and Entertainment
Travel and Tourism
Others

Regional Insights:

North India
South India
East India
West India

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

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About Us:

IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.