According to a recent report by PwC, the credit card market has experienced remarkable growth, doubling the number of cards issued in the last five years—a trend likely to continue in the coming years.

Alongside the increase in card issuance, the industry has also seen a substantial rise in transactional activity. The report highlights that transaction volumes have grown by 22%, while transaction values have surged by 28%, attributed to new products, innovative offerings, and expanding customer segments.

Interestingly, it took India almost two decades to reach its current credit card numbers, but with the ongoing momentum, the country is set to double this figure in half the time. This rapid expansion underscores the shift in consumer preferences towards credit-based spending and the increasing penetration of digital payments.
As of March 2024, the total number of credit cards issued by banks in India increased to 101 million, lead by the largest private sector bank in India-HDFC Bank, followed by SBI Card, ICICI Bank and Axis Bank.

To provide context. India ranks 8th globally with approximately 120 million active credit cards. Here’s a list of top 10 countries with approximately the most number of active credit cards:

However, as credit card usage thrives, debit cards are witnessing a decline. The report notes a 33% drop in debit card transaction volumes and an 18% decrease in spending, largely due to the rising popularity of the Unified Payments Interface (UPI), which offers ease of use and zero Merchant Discount Rate (MDR).

Meanwhile, digital payments in India continue to thrive, with transactional volume growing by 42 per cent year-on-year in FY23-24. This trend is expected to triple by FY28-29.

India’s digital payments landscape continues to evolve, with transactional volumes growing by 42% year-on-year in FY23-24. This trend is expected to triple by FY28-29, further solidifying the nation’s position as a key player in the global digital payments ecosystem.