India Credit Card Transactions Market Overview, 2029

India Credit Card Transactions Market Overview, 2029

The Indian credit card market has grown dramatically over the last five years, with the number of credit cards in circulation exceeding around 78 million, indicating a significant increase in adoption. Credit card spending reached a record high in May 2022. This spike reflects a growing tendency toward cashless transactions and demonstrates India's changing customer preferences. Recent adjustments have aimed to broaden the consumer base beyond high-income individuals in Tier 1 cities. To do this, credit card firms have devised appealing reward systems such as cashback and points to encourage spending among a broader audience. In addition, there has been an increase in the use of contactless payments and mobile wallets, demonstrating the rising reliance on technology for financial transactions. Despite having lower credit card use than Western countries, India outperforms numerous South Asian competitors. This posture emphasises the enormous development potential of the Indian market, which is primarily driven by its huge and young population. As consumer preferences change and economic conditions improve, there is a great chance for credit card usage to expand and penetrate new groups.

According to the research report “India Credit Card Transaction Market Research Report, 2029,"" published by Actual Market Research, the India Credit Card Transaction market is forecasted to add more than USD 275 Billion from 2024 to 2029. Debit cards have traditionally dominated the Indian market due to the predominance of cash transactions. However, factors such as the transition to internet shopping and increased disposable incomes have accelerated credit card acceptance. Festive seasons such as Diwali saw a considerable increase in credit card expenditure, demonstrating the cultural relevance of credit usage during joyful holidays. Several drivers and challenges influence the trajectory of the Indian credit card market. Increased internet penetration, smartphone usage, and acceptance of online payments are among the factors driving growth. Government programs such as Digital India play an important role in promoting cashless transactions and increasing credit card acceptance. However, issues such as low credit card adoption relative to industrialised economies, financial literacy gaps among some groups of the population, and cybersecurity worries about online transactions continue.

The credit card market encompasses various card types tailored to different consumer needs. General purpose credit cards, such as Visa, Mastercard, American Express, and Discover, offer versatility for a wide range of purchases and transactions, both online and in-person. These cards often come with rewards programs, cashback incentives, and robust security features. In contrast, specialty credit cards cater to specific demographics or interests, providing tailored rewards and benefits. Examples include airline miles cards, hotel rewards cards, and store credit cards. Additionally, there's a category referred to as ""Other"" credit cards, which encompasses less common types like prepaid cards, secured credit cards, corporate credit cards, and charge cards. Prepaid cards are loaded with a predetermined amount of funds, while secured credit cards require a security deposit, often used for credit building. Corporate credit cards are issued for business expenses, and charge cards necessitate full monthly balance payments. Providers like Visa and Mastercard play pivotal roles in offering credit card services in collaboration with financial institutions. Moreover, credit card applications span various sectors, including food and groceries, health and pharmacy, consumer electronics, and other areas like restaurants and bars, media and entertainment, and travel and tourism. Each application segment reflects the diverse usage of credit cards across different industries, highlighting the integral role credit cards play in facilitating everyday transactions and lifestyle needs.

In terms of prospects, there is great potential for increasing credit card usage beyond urban hubs into smaller towns and rural areas. This growth could be aided by adapting offerings to the individual needs and preferences of these groups. Furthermore, there is a potential to work with retailers to offer co-branded cards with tailored rewards, which will encourage usage and develop consumer loyalty. Another path for growth is to use big data and analytics to provide personalised credit offerings, hence improving client experiences and happiness. Several supporting events help to create an environment that encourages the credit card industry's growth and progress. Government measures to promote digital payments infrastructure create an enabling ecosystem for growing credit card and other electronic payment acceptance. Furthermore, the growing popularity of contactless payment systems creates a substantial opportunity for market expansion and innovation in the credit card industry, as consumers seek more convenient and safe payment solutions. Pricing in the credit card market varies according to the type of card (e.g., rewards cards, travel cards) and the applicant's creditworthiness. Annual costs typically range from INR 0 to INR 5,000 or more, with higher fees commonly linked with premium cards that provide additional advantages and privileges. Furthermore, segmentation tactics target specific client categories with specialised perks and reward programs that adapt to their unique requirements and interests.

The Reserve Bank of India (RBI) is the major regulatory authority that oversees the country's credit card industry. Among the primary laws imposed by the RBI are severe Know Your Customer (KYC) standards, which ensure that financial institutions have adequate documentation and verification procedures in place for their consumers. Furthermore, the RBI requires two-factor authentication for online transactions, which strengthens security measures to safeguard consumers from fraudulent activity and illegal access to their accounts. Following the epidemic, the credit card sector experienced a significant rebound, with expenditure reaching new heights by October 2023. This fast rebound represented a remarkable recovery from the first slowness experienced at the height of the pandemic. As economies reopened and consumer confidence gradually restored, people increasingly turned to credit cards as a handy form of payment, driving spending to new highs. Furthermore, this recovery was fueled by an industry-wide drive to boost point-of-sale (POS) transactions and e-commerce payments. Both banks and fintech businesses increased their efforts to improve the accessibility and simplicity of credit card usage, resulting in a significant increase in digital transactions. As a result, competition in the sector increased as institutions competed for a larger market share, leading to innovative offers and improved customer experiences.
Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Credit Card Transactions market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Card Type
• General Purpose
• Specialty & Other Credit Cards

By Provider
• Visa
• Master-card
• Others

By Application
• Food & Groceries
• Health & Pharmacy
• Consumer Electronics
• Other Application

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Credit Card Transactions industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Credit Card Transactions market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Card Type
• General Purpose
• Specialty & Other Credit Cards

By Provider
• Visa
• Master-card
• Others

By Application
• Food & Groceries
• Health & Pharmacy
• Consumer Electronics
• Other Application

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Credit Card Transactions industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.