India’s digital payments landscape is witnessing growth in non-metro cities. A new whitepaper by Visa reveals 175% increase in card spending in non-metro regions from 2019 to 2024.

The surge is largely driven by evolving consumer behaviors, rising incomes, and expanding digital infrastructure.

Rapid growth in Cat B and Cat C+ cities

Visa’s data highlights a fourfold rise in credit card spending in Cat B and C+ cities between 2019 and 2024. This growth is four times higher than the 1.4X increase observed in metro cities.

Cities like Trichy, Bhubaneswar, and Jaipur in Cat B, as well as emerging regions like Tirupur and Sangli in Cat C+, are at the forefront of this shift.

E-commerce and digital services lead the way

Online spending has surged in these regions, particularly in categories such as apparel, travel, gaming, and online education.

The share of online spending in Cat C+ cities jumped from 53% to 73%.

Visa also reported a 16X increase in spending on online gaming and a 9X rise in digital content consumption in these regions.

Financial inclusion opportunities

Despite the rapid growth, formal credit penetration remains low in these areas, creating an opportunity for financial institutions to provide tailored products.

In 2019, formal credit penetration was just 10.5% in Cat B+ cities compared to 42.4% in metro areas.

Visa identifies four key areas for success in these regions:

• Consumers seek flexible repayment options.
• Reward programs and exclusive benefits are highly valued.
• User-friendly, multilingual financial products are preferred.
• Secure, trusted digital payment methods with effective support mechanisms are in demand.